Howard Hughes Rejects Pershing Square’s Proposal, Negotiations Continue

Howard Hughes Holdings Inc. has rejected a recent takeover proposal from Pershing Square Capital Management, calling it 'not acceptable in its current form.' Both parties have agreed to a standstill agreement until March 13 to facilitate further discussions regarding potential alternatives. The latest proposal, which offers $90 per share for 10 million new shares, would increase Pershing Square's ownership from 37.6% to 48% and involve Bill Ackman becoming chairman and CEO. This offer represents a premium over HHH's recent trading range, indicating a significant interest from Ackman in taking the company private. Although negotiations are ongoing, Howard Hughes has stated it will not comment further unless necessary. The company is advised by Morgan Stanley and legal counsel from Hogan Lovells and Richards, Layton & Finger.