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Bill Ackman's Pershing Square has offered to buy shares it does not already own in real estate developer Howard Hughes Holdings, in a move the billionaire investor suggested could turn the Texas-based holding company into a “modern-day Berkshire Hathaway.”
Ackman believes Howard Hughes, who owns properties in Las Vegas, Texas and Hawaii, is poised to generate cash flow from his properties to begin acquisitions of other companies or real estate operations.
Pershing Square is offering Howard Hughes shareholders $85 per share, Ackman said in a letter to the company's board on Monday. Shares closed Friday at $71.78, giving the company's shares a value of $3.6 billion.
Pershing already owns approximately 38 percent of Howard Hughes shares.
Howard Hughes shares rose more than 10 percent in pre-market trading following the announcement.
This is a developing story
