Howard Hughes (NYSE:HHC) +5.7% pre-market Friday after Pershing Square Capital Management said it launched a cash tender offer to purchase as much as 6.34M common shares at a price not greater than $60 nor less than $52.25 each.
Pershing already is Hughes' (HHC) largest shareholder with a 27.3% stake, and the tender offer represents another 12.7% of shares outstanding as of July 28.
The buyers said they are making the offer because they believe Hughes' (HHC) current stock price is below the company's long-term intrinsic value.
Hughes (HHC) shares rose 2.4% Thursday, a day after posting their lowest closing price since August 2020.
Howard Hughes (HHC) is "a deep-value opportunity" with underlying net asset value more than 2.5x higher than the current share price, Noor Darwish writes in an analysis newly published on Seeking Alpha.