Hedge fund executive Bill Ackman has proposed creating a new entity to merge with the real estate developer Howard Hughes Holdings (NYSE: HHH).
CNBC reports the new entity would be a subsidiary of Ackman’s Pershing Square, which currently owns about 38% of Howard Hughes. In a letter to the Howard Hughes board of directors, Ackman said the company would not be changed and its leadership team led by CEO David O’Reilly would remain in place.
“While we are pleased with the substantial business progress Howard Hughes Holdings has made over the more than 14 years since it went public, we, like other long-term shareholders and this board, have been displeased with the Company’s stock price performance,” wrote Ackman in his letter, adding, “Stockholders would have the option of receiving more than a majority of their merger consideration in cash at $85.00 per share – representing a premium of 38.3% to the unaffected stock price and a premium of 18.4% to the closing price this past Friday – and the balance in stock of the post-merger company.”
The company did not immediately respond to Ackman’s proposal.
Photo courtesy of Pershing Square Foundation
