Pershing Square to sell stake in Howard Hughes

Pershing Square Holdings (PSH) has proposed the sale of 2.5 million shares in the real estate developer The Howard Hughes Corp. (HHC), potentially raising more than $300 million.

PSH is pursuing this sale in order to help facilitate a potential tender offer for PSH’s public shares by PSCM Acquisition Co., an entity owned by William Ackman and members of the Pershing Square Capital Management advisory board and senior management.

Selling PSH’s common stock in HHC will provide more flexibility under the “United States real property holding company” rules pursuant to the FIRPTA provisions in the Internal Revenue Code.