Howard Hughes Stock Jumps 11% Monday Pre-Market After Bill Ackman's Pershing Square Proposes $1B Stake Boost (CORRECTED)

Editor’s Note: This story has been updated to clarify that Ackman’s Pershing Square plans to increase its Howard Hughes Holdings stake by $1 billion.

Howard Hughes Holdings Inc. HHH experienced an 11.01% increase in its stock price on Monday during pre-market hours, as per Benzinga Pro, after Bill Ackman‘s Pershing Square declared that it is set to augment its stake in Howard Hughes Holdings by $1 billion.

The offer was made on Monday at $85 per share, according to Reuters. The proposal will allow the shareholders of Texas-based real estate developer, a long-standing investment for Pershing Square, to choose between receiving the full payment in cash or opting to “roll over” their shares into the post-merger entity, as stated in a letter from Pershing.

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"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 a letter.

Howard Hughes Holdings, with a market capitalization of $3.6 billion, has not yet provided a comment on the offer, Reuters noted. The move by Ackman’s firm reflects its continued interest and investment in the real estate developer, which has been a part of its portfolio for an extended period.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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