Pershing Square Seeks Dismissal of Suit Over $900 Million Howard Hughes Stake Deal
Updated
Updated · Bloomberg · May 11
Pershing Square Seeks Dismissal of Suit Over $900 Million Howard Hughes Stake Deal
1 articles · Updated · Bloomberg · May 11
Pershing Square asked Delaware Chancery Court to throw out a shareholder class action challenging its Howard Hughes share purchase, calling the case “facially defective.”
The suit alleges Bill Ackman bullied Howard Hughes directors into approving an unfair deal that let Pershing Square expand its influence over the real estate company at too low a price.
That transaction involved $900 million of newly issued Howard Hughes shares and lifted Pershing Square’s stake to nearly 47% from about 37%.
Investors claim the increased holding effectively gave Pershing Square “operational and managerial” control of Howard Hughes, making the pricing and process central to the dispute.
Did a new Delaware law just give Bill Ackman a free pass to control Howard Hughes?
Was Ackman's $900M investment a strategic rescue for the company or a calculated takeover for his firm?