Shares of Howard Hughes Corp. HHC, +4.01% jumped 2.8% in premarket trading Friday, after investor Pershing Square Capital Management said it has launched a cash tender offer to buy up to 6.34 million of the real estate development and management company’s stock. That represents up to 12.7% of the shares outstanding as of July 28. Pershing said it would pay between $52.25 and $60.00 for the stock, with the price determined through a modified Dutch auction as offers to sell come in. Pershing was already the largest shareholder of Howard Hughes with a 27.3% stake, according to FactSet data. Pershing said it was making the tender offer because it believes the stock price is below the company’s long-term intrinsic value. The stock had bounced 2.5% on Thursday, after closing Wednesday at the lowest price since August 2020. The stock has plunged 46.1% year to date through Thursday, while the S&P 500 SPX, -1.69% has lost 23.0%.
