Bill Ackman Proposes $1 Billion Howard Hughes Merger

Bill Ackman's Pershing Square Capital Management is proposing a $1 billion merger with Howard Hughes Holdings, aiming to take the real estate firm private and transform it into a diversified holding company akin to Berkshire Hathaway. Pershing currently owns 37.6% of Howard Hughes and plans to offer $85 per share to buy out the remaining shareholders, which represents a significant premium over the current stock price. Ackman expressed dissatisfaction with Howard Hughes' stock performance since its public listing over 14 years ago and stated his intention to appoint himself as chairman and CEO of the new entity. The merger proposal comes after Ackman's previous interest in acquiring the company was noted, leading Howard Hughes' board to form a special committee to evaluate potential offers. Shares of Howard Hughes rose 10% following the announcement of the buyout offer. Ackman emphasized that any surplus cash generated would be reinvested into new companies and assets to increase shareholder value.