Pershing Square Extends Standstill with Howard Hughes Holdings

Rhea-AI Summary

Pershing Square Holdco has announced an extension of its standstill agreement with Howard Hughes Holdings (NYSE: HHH). The extension moves the deadline from April 7, 2025, 5:00 p.m. (Eastern Time) to April 15, 2025, 5:00 p.m. (Eastern Time). This extension aims to facilitate ongoing discussions regarding a proposal previously announced by Pershing Square on February 18, 2025, and explore potential alternatives.

The company states that there is no guarantee of any particular outcome from these discussions, and Pershing Square will not provide additional comments until deemed necessary or legally required.

Insights

Corporate Finance Strategist

The extension of Pershing Square's standstill agreement with Howard Hughes Holdings (HHH) signals ongoing significant negotiations that could materially impact HHH's future. This extension moves the deadline from April 7 to April 15, 2025, providing additional time to discuss Pershing Square's February 18th proposal.

This development hints at a complex negotiation process requiring more time. Standstill agreements typically prevent an investor from increasing their stake or making hostile moves during negotiations. The extension suggests the parties see potential value in continuing discussions rather than abandoning talks.

For context, Pershing Square, led by Bill Ackman, is known for activist investing with substantial ownership positions. The nature of their February proposal isn't detailed, but could range from a significant investment to a complete acquisition or restructuring plan.

The cautious language noting "no assurance of any particular outcome" is standard but important - these discussions may ultimately not result in any transaction. The brief extension period (only 8 days) suggests negotiations are at a critical stage, with parties potentially close to either agreement or impasse.

M&A Specialist

The standstill extension between Pershing Square and Howard Hughes Holdings represents a critical negotiation phase that warrants investor attention. While the extension is brief (8 days), it suggests both parties see sufficient mutual interest to continue discussions rather than abandon them.

The standstill mechanism itself is significant - it temporarily restricts Pershing Square's ability to acquire additional shares or launch hostile actions, creating a protected negotiation environment. This extension indicates the discussions have sufficient promise to warrant continuing this protected status.

The lack of detail about the February 18th proposal is notable but typical during sensitive negotiations. Based on Pershing Square's history, possibilities include a full acquisition offer, a significant investment stake, or a strategic restructuring proposal for HHH.

The short extension timeframe suggests negotiations are likely in advanced stages. Typically, such brief extensions occur when parties are either close to agreement or need minimal additional time to resolve remaining issues. The announcement's timing (made on a weekend) further indicates the urgency and importance of these discussions.

NEW YORK--(BUSINESS WIRE)-- Pershing Square Holdco, L.P. (“Pershing Square”), the parent holding company of Pershing Square Capital Management, L.P. (“PSCM”), today announced that PSCM has further extended the term of its standstill agreement with Howard Hughes Holdings Inc. (NYSE: HHH) (“HHH”) to facilitate ongoing discussions regarding the proposal previously announced by Pershing Square on February 18, 2025 and potential alternatives. On April 5, 2025, the term of the standstill agreement was extended from 5:00 p.m. (Eastern Time) on April 7, 2025 to 5:00 p.m. (Eastern Time) on April 15, 2025.

There can be no assurance that the foregoing will result in any particular outcome, and Pershing Square does not intend to comment further on these matters until Pershing Square determines that additional disclosure is appropriate or required by law.

Important Additional Information and Where to Find It

This communication is not a recommendation to buy, sell or exchange any securities, and it does not constitute an offer to sell or buy or the solicitation of an offer to buy or sell any securities. Information about Pershing Square and certain of the matters discussed in this press release is described in Pershing Square’s Schedule 13D relating to HHH available at the SEC’s website at www.sec.gov.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this release. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Pershing Square assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Pershing Square does not give any assurance that Pershing Square will achieve its expectations. The inclusion of any statement in this press release does not constitute an admission by Pershing Square or any other person that the events or circumstances described in such statement are material.

About Pershing Square and PSCM

Pershing Square is the parent holding company of PSCM, a New York-based SEC-registered investment advisor to investment funds.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250407266094/en/

Pershing Square

Francis McGill

McGill@persq.com

212-909-2455

Source: Pershing Square Holdco, L.P.

FAQ

When does the extended standstill agreement between Pershing Square and Howard Hughes Holdings (HHH) expire?

The standstill agreement expires on April 15, 2025, at 5:00 p.m. Eastern Time.

What is the purpose of the standstill agreement extension for HHH stock?

The extension facilitates ongoing discussions about Pershing Square's February 18, 2025 proposal and explores potential alternatives.

When was the original proposal by Pershing Square regarding HHH announced?

Pershing Square's original proposal was announced on February 18, 2025.

What was the previous deadline for the HHH standstill agreement before the extension?

The previous deadline was April 7, 2025, at 5:00 p.m. Eastern Time.