Pershing Square's potential majority stake could influence Howard Hughes' future, but risks remain. See my recommendation on HHH stock.

Shares of Howard Hughes rose Monday but were below Ackman’s offering price. It may take more from Pershing Square to seal a deal.

(Reuters) -Billionaire investor Bill Ackman's Pershing Square said on Monday it has offered to buy the remaining stake it does not already own in real estate developer Howard Hughes Holdings for $85 per share.

Shares of Howard Hughes Holdings jumped after hedge-fund manager Bill Ackman's firm offered to buy 11.8 million Howard Hughes shares at $85 apiece to own a majority stake in the company. The stock jumped about 9.

Howard Hughes Holdings Inc. (NYSE: HHH) has received a $1 billion offer from the firm run by The Woodlands-based developer’s former chairman. Pershing Square Capital Management

Pershing Square Capital Management LP has proposed a deal to merge one of its subsidiaries with real estate company Howard Hughes Holdings Inc., according to a letter to investors.

Under the proposed deal, a Pershing Square unit will buy 11.8 million shares for $1 billion from non-Pershing Square affiliate shareholders of Howard Hughes, while the real estate developer will commence a $500 million share repurchase at $85 per share for up to 5.9 million shares.

Howard Hughes (HHH) was up 11.3% in premarket trade after billionaire hedge fund manager, Bill Ackman, through Pershing Square issued a proposal that would increase its holdings in HHH.

Pershing Square Capital Management LP propuso un acuerdo para fusionar una filial recientemente creada con Howard Hughes Holdings Inc, en el paso más reciente del intento de Ackman por adquirir el promotor inmobiliario que solía ayudar a dirigir.