From CNBC: 2025-02-18 16:31:25

Bill Ackman, CEO of Pershing Square Capital Management, raised his takeover bid for Howard Hughes Holdings to $90 per share. The offer includes acquiring 10 million new shares at the increased price, with plans for Pershing Square to own 48% of the real estate developer based in Texas.

Howard Hughes stock dropped nearly 5% in extended trading after Ackman’s announcement. The stock had initially risen 6.8% to $80.60 in anticipation of the news. If the deal goes through, Ackman will become chairman and CEO of Howard Hughes, committing to long-term investment without selling any shares.

Ackman aims to transform Howard Hughes into a diversified holding company akin to Berkshire Hathaway, inspired by Warren Buffett’s career evolution. The new company will focus on acquiring controlling stakes in private and public companies that meet Pershing Square’s criteria for quality businesses. Buffett’s Berkshire Hathaway is now valued at $1 trillion.

Howard Hughes will retain its focus on developing and owning “master planned communities” like the Woodlands in Houston and Summerlin in Las Vegas. Ackman believes investing in growing markets and creating long-term value is a better strategy than holding onto declining industries.

Read more: Bill Ackman raises bid for Howard Hughes, says he will turn it into ‘modern-day Berkshire’