Pershing Square plans $900M stake increase in Howard Hughes

Bill Ackman's Pershing Square Capital Management has revised its proposal to acquire Howard Hughes Holdings by offering to buy 10 million newly issued shares for $900 million, raising its stake from 37.6% to 48%. The new share price of $90 per share represents a significant premium over the stock's prior unaffected price. Ackman plans to assume the roles of chairman and CEO of Howard Hughes, while its current CEO will manage the company's subsidiary. This proposal replaces a previous, larger offer Ackman made in January that sought a controlling stake of between 61% and 69%. Pershing Square intends to finance the deal using cash on hand, and the transaction is anticipated to strengthen Howard Hughes' position as a diversified holding company. The move aligns with Ackman's long-term strategy to enhance Howard Hughes' operational capabilities and growth potential.