Bill Ackman raises bid for Howard Hughes, says he will turn it into ‘modern-day Berkshire’

cnbc.com:

Pershing Square's Bill Ackman hiked his takeover offer for Howard Hughes Holdings, offering current holders of the real estate company $90 a share to create a «modern-day» Berkshire Hathaway.

The billionaire investor said Tuesday his firm has submitted a proposal to acquire 10 million newly issued Howard Hughes shares at $90 per share, up from $85 per share from January. If the transaction goes through, Pershing Square will own 48% of the real estate developer based in The Woodlands, Texas.

Shares of Howard Hughes fell nearly 5% in extended trading following the news. The stock had closed up 6.8% at $80.60 in anticipation of the announcement.

Ackman will become chairman and CEO of Howard Hughes if the deal comes to fruition. He added that his investment company will not sell any of the shares as it intends to be a long-term investor.

«We will make available the full resources of Pershing Square to HHH to build a diversified holding company, or one could say, a modern-day Berkshire Hathaway,» Ackman said in a post on X. «The new HHH will acquire controlling interests in private and public companies that meet Pershing Square's criteria for business quality.»

Ackman said he took inspiration from the unusual career path of the legendary «Oracle of Omaha.» The 94-year-old Warren Buffett started out, essentially, as an activist investor and hedge fund manager running a series of private partnerships, until the 1960s when he closed his partnerships and took control of Berkshire Hathaway, a struggling textile business.

Today, Berkshire is worth $1 trillion with businesses in industries including insurance, energy, railroad and retail as well as a massive equity portfolio and over $300 billion in cash.

Ackman said Howard Hughes