B
illionaire investor Bill Ackman is making a bold move to create a modern-day Berkshire Hathaway by taking real estate company Howard Hughes Holdings private. Pershing Square, the hedge fund led by Ackman, currently holds a 37.6% stake in HHH and plans to offer $85 per share to buy out the remaining shares. This would increase Pershing Square's stake to between 61% and 69%, depending on how many investors agree to be bought out.

    Ackman has been involved with Howard Hughes for over a decade, serving as chairman from 2010 until stepping down in April. In a letter to investors, he expressed disappointment with the company's stock price performance and stated that HHH would become a modern-day Berkshire Hathaway, acquiring controlling interests in operating companies. Following the news, Howard Hughes shares rose 9.5% to $78.62.

    Ackman's plan is reminiscent of his rescue of mall operator General Growth Properties in 2004, which led to his involvement with Howard Hughes. Pershing Square's stock portfolio is concentrated in seven companies, including Chipotle and Alphabet, the parent company of Google. With a net worth of $9.2 billion, Ackman aims to create a business empire that rivals Warren Buffett's Berkshire Hathaway.