Bill Ackman Presents His Big Investment Idea At The Value Investing Congress

Bill Ackman

Hedge fund titan Bill Ackman, the founder of Pershing Square Capital Management, presented his big investment idea at the 8th annual Value Investing Congress in Manhattan. 

He started off talking about how he likes real estate investment trust General Growth Properties. He says the stock has done quite well since emerging from Chapter 11 bankruptcy protection.  

Then he started talking about Brookfield Asset Management.  

He said that if Brookfield can get its stake in General Growth Properties to 45% then it will have “de facto” control and that could be harmful to the minority shareholders.  

He sees Simon Property Group making a bid for GGP and that’s a good thing.  

According to Ackman, Simon Property Group made four offers to acquire GGP.  Since Simon’s offer for GGP in 2010, GGP has come a long way. 

As a standalone business, GGP is attractive, Ackman said.  However, a Simon merger is “substantially superior”to GGP remaining independent.  

Ackman said that it’s a great deal for Simon and GGP.

On a standalone basis, Ackman says GGP should be $31/share over the next five years, but if there’s a deal with Simon it could be better. 

“We strongly urge General Growth Properties board to form a special committee, hire independent advisors to salvage shareholder value before it’s too late,” the final slide in his presentation said. 

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