HHH

Ackman's Stake Sale: Bill Ackman announced the sale of a portion of his stake in Universal Music Group, reducing it from 27% to approximately 17% of his portfolio while still maintaining it as the largest position. He believes UMG is one of the best businesses he has owned and is preparing for a secondary listing on a major U.S. exchange.

Investment Strategy: Alongside the UMG sale, Ackman is pursuing a strategy to create a modern-day Berkshire Hathaway by proposing a significant investment in Howard Hughes Holdings, aiming to transform it into a diversified holding company similar to Buffett's conglomerate.

Standstill Agreement Extension: Howard Hughes Holdings Inc. has extended its standstill agreement with Pershing Square Capital Management until April 7, 2025, with no assurance of a specific outcome from ongoing discussions.

Company Overview: Howard Hughes Holdings Inc. is a prominent real estate company in the U.S., managing and developing various properties including master planned communities, and is recognized for its commitment to design excellence and community cultural life.

Standstill Agreement Extension: Pershing Square has extended its standstill agreement with Howard Hughes Holdings Inc. until April 7, 2025, to continue discussions regarding a proposal made on February 18, 2025.

Forward-Looking Statements Disclaimer: The press release includes forward-looking statements that are subject to risks and uncertainties, and Pershing Square does not guarantee any specific outcomes or updates regarding these statements.

Standstill Agreement Extension: Pershing Square Capital Management has extended its standstill agreement with Howard Hughes Holdings until April 7, 2025, to facilitate ongoing discussions about a proposed acquisition and other alternatives.

Proposal Rejection: The talks follow Howard Hughes Holdings' rejection of Pershing Square's proposal to purchase 10,000 shares at $90 each, which would have given Pershing Square a 48% stake in the company.

Howard Hughes Holdings' Response: The special committee of Howard Hughes Holdings has deemed the latest offer from Pershing Square unacceptable in its current form.

Standstill Agreement: The company has entered into a standstill agreement with Bill Ackman's investment fund, which will last until March 13, to facilitate further discussions on potential alternatives.

Howard Hughes Holdings Inc. Response: The Special Committee of Howard Hughes Holdings Inc. has rejected a proposal from Pershing Square Capital Management and entered into a standstill agreement to discuss potential alternatives until March 13, 2025.

Company Overview: Howard Hughes Holdings Inc. is a real estate company that owns and develops various properties across the U.S., focusing on master planned communities and innovative placemaking.

Financial Performance: Howard Hughes reported a Q4 GAAP EPS of $3.25, exceeding expectations, with revenue of $983.59 million reflecting a 214.3% year-over-year increase. The company also delivered significant projects and achieved notable profits from land sales.

2025 Outlook: The company anticipates strong performance in 2025, projecting a 5% to 10% increase in MPC EBT and stable Operating Assets NOI, driven by residential land sales and improved occupancy rates in multifamily developments, despite some challenges in retail and office sectors.

Major Earnings Reports: Key companies reporting earnings after the market close on Wednesday include NVIDIA, Salesforce, Snowflake, and Teladoc Health.

Additional Earnings Releases: A wide range of other companies are also set to release their earnings reports, covering various sectors and industries.

Ackman's Investment Proposal: Billionaire investor Bill Ackman plans to increase his stake in Howard Hughes Holdings by proposing to buy 10 million newly issued shares at $90 each, raising his ownership from 37.6% to 48%, with aspirations to transform the company into a diversified holding similar to Berkshire Hathaway.

Financial Implications and Market Reaction: The proposed deal includes an annual fee for Pershing Square based on Howard Hughes' market capitalization, potentially earning around $56 million per year, while the stock price of Howard Hughes rose 6.8% following the announcement.

Market Activity: Several significant acquisition deals were reported this week, including Shift4 Payments' purchase of Global Blue for $2.5 billion and Celsius Holdings' acquisition of Alani Nu for $1.8 billion, while Howard Hughes shares fell after a takeover proposal from Bill Ackman's firm.

Corporate Developments: Companies like Herc Holdings and Tapestry announced major acquisitions and sales, with Herc acquiring H&E Equipment Services and Tapestry selling Stuart Weitzman to Caleres for $105 million, amidst competitive bids for Family Dollar by private equity firms.

Victoria Ward Park Opening: The makai phase of Victoria Ward Park has opened in Honolulu as part of the Ward Village community's sustainable development plan, coinciding with new guidelines for smart growth that allow for significant future redevelopment in the area.

Community Development Goals: The new park and updated regulations aim to enhance public green space, provide much-needed housing, and create a vibrant mixed-use neighborhood that integrates homes, public spaces, and local businesses.

Earnings Release Announcement: Howard Hughes Holdings Inc. will release its 2024 fourth quarter earnings on February 26, 2025, and hold a conference call on February 27, 2025, at 10:00 AM ET, with details available on their website.

Company Overview: Howard Hughes Holdings Inc. is involved in the ownership, management, and development of various real estate properties across the U.S., recognized for its master planned communities and commitment to design excellence.

Impact of Politics on Financial Markets: The intertwining of politics and financial markets is evident as stock fluctuations are influenced by President Biden's export controls on chips and speculation regarding Trump's tariff policies, which could affect inflation and bond yields.

Corporate Developments and Legal Decisions: Companies like Nvidia and Cleveland-Cliffs are navigating regulatory challenges and potential acquisitions, while the Supreme Court's impending decision on TikTok's status in the U.S. adds to the uncertainty in the market.

Ackman's Investment in Howard Hughes Holdings: Bill Ackman's Pershing Square plans to increase its stake in Howard Hughes Holdings by $1 billion, resulting in an 11.01% rise in the company's stock price during pre-market hours.

Shareholder Options and Company Performance: Shareholders will have the option to receive cash or roll over their shares into a post-merger entity; Ackman expressed dissatisfaction with the company's stock performance despite its business progress over the years.

Ackman's Proposal: Bill Ackman's Pershing Square Holdings is proposing a merger with Howard Hughes Holdings, aiming to increase its stake to between 61.1% and 69.2% through a $1 billion investment and a $500 million stock buyback, valuing the company at $85 per share.

Market Reaction: Howard Hughes shareholders are skeptical of Ackman's offer, with concerns that it undervalues the company; the stock rose only 9.5% following the proposal, remaining below the offered price, and a special committee has been formed to evaluate the deal.

Ackman's Proposal: Bill Ackman’s Pershing Square Holdings is proposing a merger with Howard Hughes Holdings, offering $85 per share, which represents an 18% premium over the current stock price, while also planning a $500 million stock buyback.

Shareholder Response: The proposal has faced skepticism from Howard Hughes shareholders, with some believing it undervalues the company and expecting a better offer, as the company's net asset value is estimated to be significantly higher than Ackman's bid.

Proposal for Acquisition: Howard Hughes Holdings Inc. has received a proposal from Pershing Square Capital Management to acquire additional shares in a merger, which would result in Pershing Square owning a majority of the company's common stock.

Special Committee Evaluation: The Board of Directors has formed a Special Committee to evaluate the proposal and determine the next steps; no immediate action is required from HHH stockholders at this time.

Ackman's Investment in Howard Hughes Holdings: Billionaire Bill Ackman has been a significant shareholder of Howard Hughes Holdings Inc. since its spinoff from General Growth Properties in 2010, and he served as chairman until May 2023.

Stock Performance Concerns: Despite his long-term investment, Ackman is dissatisfied with the company's stock performance, which has dropped approximately 50% from its peak near $150 per share in 2014.

Proposed Merger Details: Bill Ackman of Pershing Square has proposed a merger between Howard Hughes Holdings Inc. and a subsidiary of Pershing Square, offering HHH stockholders an option to receive $85 per share in cash or stock, representing significant premiums over current stock prices.

Leadership and Strategic Goals: Following the merger, Pershing Square's leadership team will take executive roles at HHH, while HHC will continue to operate independently under its current management, focusing on long-term strategic objectives and diversifying HHH’s investments.

Stock Price Increase: Howard Hughes Holdings Inc. saw an 11.01% rise in its stock price during pre-market hours after Bill Ackman's Pershing Square announced an offer to acquire the remaining shares at $85 each.

Shareholder Options: The acquisition proposal allows shareholders to either receive full payment in cash or roll over their shares into the new entity post-merger, reflecting Pershing Square's long-term investment interest in the company.