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Bill Ackman offers $1 billion to real estate giant Howard Hughes to rival Berkshire Hathaway

Bill Ackman offers $1 billion to real estate giant Howard Hughes to rival Berkshire Hathaway

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According to the New York Post. According to the New York Post, creating “a modern-day Berkshire Hathaway” is no small feat, but that’s exactly what billionaire investor and hedge fund manager Bill Ackman plans to do. The CEO of Pershing Square plans to increase his stake in real estate company Howard Hughes Holdings and take the company private.

Ackman said in a letter to investors that Pershing currently owns a 37.6% stake in HHH and plans to offer $85 per share to buy out the rest of the company.

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“With apologies to Mr. Buffet, HHH would become a modern-day Berkshire Hathaway that would acquire controlling interests in operating companies,” wrote Ackman, 58, who has a net worth of $9.2 billion.

Following the news, shares of Howard Hughes rose 9.5% to $78.62. Ackman has been involved with the real estate company for ten years and only stepped down from the board of directors in April after serving as chairman since 2010.

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“We, like other long-term shareholders and this board, are dissatisfied with the company’s share price development,” Ackman said in the letter, according to Reuters. When the deal closes, Pershing Square’s stake in Howard Hughes would increase to somewhere between 61% and 69%, depending on how many investors agree to be bought out of the 38% it currently holds.

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Howard Hughes was an offshoot of the real estate investment trust General Growth Properties, which formed its own entity in 2010. It owns and manages several types of U.S. real estate, including commercial, residential and mixed-use. It has a market value of $3.6 billion.

Ackman founded Pershing Square in 2004. One of his most notable moves was the rescue of shopping center operator General Growth Properties, from where he became involved with Howard Hughes. According to Forbes, Pershing Square’s stock portfolio is concentrated in seven companies, including Chipotle, Hilton and Google parent Alphabet, where he has more than 20% of his shares invested, according to The Motley Fool. Ackman stands out among other fund managers for his large social media following with over a million followers on X.

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