Pershing Square Makes Bid for Howard Hughes Holdings Takeover

(Updated with additional information)

Pershing Square Capital Management CEO Bill Ackman on Monday proposed merging Howard Hughes Holdings with a newly formed Pershing unit for $1 billion, with Howard Hughes as the surviving corporation. The New York-based investment advisor already owns 37.6% of Howard Hughes shares. 

“While we are pleased with the substantial business progress Howard Hughes Holdings … has made over the more than 14 years since it went public, we, like other long-term shareholders and this board, have been displeased with the company’s stock price performance,” Ackman wrote in a letter to Howard Hughes’ board. 

Headquartered in The Woodlands, TX, Howard Hughes became a pure-play real estate firm last August by spinning off its Seaport Entertainment Group. Shortly afterward, Pershing Square indicated that it was considering a bid to take Howard Hughes private, the Wall Street Journal reported. 

Shares of Howard Hughes were up Monday following reports of the buyout offer. The company late Monday afternoon acknowledged receipt of Ackman’s letter, saying that it had formed a special committee in August following Pershing Square’s initial expression of interest. The special committee will evaluate the latest proposal.

Pictured: Howard Hughes headquarters in The Woodlands, TX.