Howard Hughes Stock Surges to $85 in 2025 After Billionaire Bill Ackman’s $1 Billion Buyout Proposal

Highlights to Know

• Howard Hughes shares surged following Bill Ackman’s Pershing Square bid to acquire a controlling stake.
• As of November 14, 2024, Pershing Square held 38% ownership, per SEC filings.
• The proposed merger involves a Pershing subsidiary offering $85 per share, with options for existing investors to accept or reinvest.

Billionaire investor Bill Ackman’s Pershing Square Capital Management has proposed a $1 billion acquisition of real estate developer Howard Hughes Holdings (HHH) at $85 per share, igniting a notable rise in the company’s stock price.

This $85 offer represents an 18% premium over the closing price of $71.78 on the previous Friday, propelling shares to an intraday peak of $78.62 on Monday. Over the past year, Howard Hughes shares have remained relatively stable, but this bid marks a significant catalyst.

Ackman criticized Howard Hughes’ historical stock performance, highlighting a modest 2.2% compound annual growth rate since its 2010 public listing.

According to the latest SEC disclosure, Pershing Square owned 38% of Howard Hughes as of mid-November 2024. The investment firm plans to establish a subsidiary that would merge with Howard Hughes, offering shareholders the choice to either accept the $85 per share offer or roll their investment into the combined entity.

Howard Hughes has yet to issue an official statement regarding the proposal.

In addition to the $1 billion acquisition, Pershing Square intends to initiate a $500 million share repurchase program at the same $85 price point. Post-transaction, Pershing’s stake in the merged company is expected to range between 61.1% and 69.2%, solidifying its controlling interest.

While the core real estate operations will continue unchanged, Ackman envisions transforming Howard Hughes Holdings into a "modern-day Berkshire Hathaway," aiming for diversified growth and long-term value creation.

Correction and Update: Earlier reports mistakenly stated Pershing Square sought to acquire all outstanding shares it did not already own. Howard Hughes has since publicly acknowledged the offer, confirming ongoing discussions.

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