Billionaire investor Bill Ackman’s Pershing Square Capital Management will acquire 10 million newly issued shares of Howard Hughes Holdings for $900 million, increasing its stake to 48% from 37.6%. The revised offer replaces a previous $1 billion bid that aimed to raise its stake to 61%-69%.
Under the proposal, Ackman will become chairman and CEO of Howard Hughes, while current CEO David O’Reilly will lead its main subsidiary, Howard Hughes Corp. Shares of Howard Hughes dropped 5% in extended trading following the announcement.
Howard Hughes’ special committee will evaluate the revised offer. Pershing Square’s management will not receive cash, equity, or other compensation but will charge a 1.5% annual fee of Howard Hughes' market capitalization under a services agreement. The company’s current market cap stands at $3.8 billion, according to LSEG data.
Pershing Square will finance the deal using cash on hand. Howard Hughes owns and manages commercial, residential, and mixed-use real estate across the U.S.
Earlier, Ackman hinted on X about plans to build a “modern-day Berkshire Hathaway.” He has been involved with Howard Hughes for over a decade, serving as chairman from 2010 until he stepped down in April.
This strategic move strengthens Pershing Square’s influence over Howard Hughes and aligns with Ackman’s long-term investment vision.
