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In accordance with the Recent York Post. In accordance with the Recent York Post, creating “a modern-day Berkshire Hathaway” isn’t any mean feat, but that’s exactly what billionaire investor and hedge fund manager Bill Ackman intends to do. The Pershing Square CEO plans to extend his stake in real estate company Howard Hughes Holdings and take the corporate private.
Ackman said in a letter to investors that Pershing currently holds a 37.6% stake in HHH and plans to supply $85 a share to purchase out the remainder of the firm.
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“With apologies to Mr. Buffet, HHH would turn out to be a modern-day Berkshire Hathaway that might acquire controlling interests in operating firms,” Ackman, 58, who has a net price of $9.2 billion, wrote.
Following the news, Howard Hughes shares increased 9.5% to $78.62. Ackman has been involved with the true estate company for a decade and only stepped down from its board in April after serving as its chairman since 2010.
“We, like other long-term shareholders and this board, have been displeased with the corporate’s stock price performance,” Ackman said within the letter, in line with Reuters. When the deal is complete, it will increase Pershing Square’s stake in Howard Hughes to somewhere between 61% and 69%, depending on what number of investors conform to be bought out from the 38% it currently holds.
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Howard Hughes was an offshoot of real estate investment trust General Growth Properties, forming its own entity in 2010. It owns and manages various varieties of US real estate, including business, residential and mixed-use. It has a market value of $3.6 billion.
Ackman formed Pershing Square in 2004. Considered one of his most notable moves was the rescue of mall operator General Growth Properties, from which he became involved in Howard Hughes. In accordance with Forbes, Pershing Square’s stock portfolio is concentrated in seven firms, including Chipotle, Hilton and Google parent Alphabet, the latter of which he has over 20% of its stock invested, in line with The Motley Idiot. Ackman is notable amongst other fund managers due to his large social media following with over 1,000,000 followers on X.