FT : Bill Ackman aims to create ‘modern-day Berkshire Hathaway’ with Howard Hugh

Bill Ackman aims to create ‘modern-day Berkshire Hathaway’ with Howard Hughes deal
Investor has big ambitions for Texas-based property holding company

Bill Ackman’s Pershing Square has offered to buy the shares it does not already own in real estate developer Howard Hughes Holdings, in a move the billionaire investor suggested could turn the Texas-based holding company into “a modern-day Berkshire Hathaway”.

Ackman believes that Howard Hughes, which owns property in Las Vegas, Texas and Hawaii, is on the verge of generating the cash flow from its real estate to begin making acquisitions of other companies or property operations.

Pershing Square is offering Howard Hughes shareholders $85 per share, Ackman said in a letter to the company’s board on Monday. The shares closed on Friday at $71.78, giving the company’s equity a value of $3.6bn.

Pershing already owns almost 38 per cent of Howard Hughes’s shares.

Shares in Howard Hughes were up more than 10 per cent in pre-market trading following the announcement.

>>> US Gapping down

Gapping down
In reaction to earnings/guidance:
  • EWCZ -17%, AIRS -12.2%, ANF -7.5%, SWTX -7%, RXST -5.8%, ZUMZ -4.9%, AS -4.5%, OSW -4%, INSP -3.8%, M -2.8%, GCO -2.7% (comps), ADMA -2.2%, USFD -1.2%, ALNY -1%
Other news:
  • MREO -7% (Provides Update on Lead Clinical Programs)
  • TMDX -6.9% (responds to inaccurate and misleading claims in recent short-seller report)
  • NEOG -4.8% (to delay its 10-Q filing)
  • MRUS -4.1% (Merus and Biohaven (BHVN) Announce Collaboration to Co-Develop Three Novel Bispecific ADC Programs)
  • ASND -1.5% (Provides Business and Strategic Roadmap Update at 43rd Annual J.P. Morgan Healthcare Conference)
  • GSK -1.2% (enters agreement to acquire IDRx)
  • APAM -1% (Dec AUM)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance:
  • OPCH +10.7%, PBPB +10.1%, TXG +5.9%, BOOT +5.7%, ARQT +5.7%, FOLD +5.3%, WDFC +4.3%, NTRA +4%, LULU +3.5%, NUS +2.7%, NVCR +2.6%, AXSM +2.4%, EXAS +2.2%, MD +2.1%, AKA +2.1%
Select healthcare related names showing strength:
  • HUM +5.4%, CVS +3.3%, UNH +2.8%,
Other news:
  • SAGE +35.9% (confirms receipt of acquisition proposal from Biogen (BIIB))
  • ITCI +35.7% (Johnson & Johnson (JNJ) to acquire Intra-Cellular Therapies for $132.00 per share in cash for a total equity value of approximately $14.6 billion)
  • MOLN +26.4% (Outlines Clinical Expansion Plans and Strengthens Radiopharma Strategic Focus for 2025 at 43rd Annual J.P. Morgan Healthcare Conference)
  • ENFN +12.4% (Clearwater Analytics to acquire Enfusion for about $1.5 billion with equal mix of cash and stock)
  • HHH +10.1% (Pershing Square Holdco proposes merger with HHH where HHH would have the option of receiving more than a majority of their merger consideration in cash at $85.00/share)
  • CRBU +9.1% (Initiates the CB-010 GALLOP Phase 1 Trial in Lupus and Provides Outlook for Multiple Clinical Datasets in 2025)
  • BPMC +4.1% (Provides 2025 Outlook and Highlights Strategy for Continued Growth)
  • FTEL +3.2% (files $150 mln mixed shelf securities offering)
  • BNED +3.1% (files $100 mln mixed shelf securities offering)
  • CWAN +1.7% (Clearwater Analytics to acquire Enfusion for about $1.5 billion with equal mix of cash and stock)
  • OLMA +1.6% (entered into exchange agreements)
  • TEVA +1.1% (Announces Collaboration to Commercialize Formycon's Biosimilar Candidate to Eylea)

>>> Early premarket gappers

Early premarket gappers
  • Gapping up:
    • SAGE +38.4%, ITCI +35.6%, MOLN +24%, ENFN +13.2%, CLRB +9.1%, ARQT +6.1%, TXG +5.9%, LULU +5.8%, WDFC +5.3%, FOLD +5.3%, HUM +5.2%, BOOT +3.8%, CRBU +3.7%, CVS +3.5%, FTEL +3.2%, UNH +2.9%, BPMC +2.9%, NTRA +2.6%, RARE +2.5%, EXAS +2.2%, MD +2.1%, AKA +2.1%, CSTL +2%, CWAN +1.7%, OLMA +1.6%, TEVA +1.3%, OXY +1.2%, QGEN +0.9%
  • Gapping down:
    • EWCZ -17%, MREO -9.9%, RXST -5.8%, NEOG -4.8%, ASND -3.6%, GCO -2.7%, SWTX -2.3%, BLKB -1.1%, LNTH -1.1%, APAM -1%, GSK -1%, ALNY -1%

>>> Europe : Brokers Upgrades & Downgrades - 13th of January 2025 V2(+)

>>> Up
* Ambu Raised to Hold at ABG; PT 125 kroner
* Bank of Ireland Raised to Outperform at BNPP Exane (+)
* BBVA Raised to Buy at BofA (+)
* Bunzl Raised to Buy at Citi; PT 3,700 pence
* Canadian Tire Raised to Hold at Jefferies; PT C$155
* Caterpillar Raised to Inline at Evercore ISI; PT $365
* Etsy Raised to Hold at Jefferies; PT $55
* Eurazeo Raised to Buy at Goldman; PT 91 euros (+)
* Frontline PLC Raised to Buy at SEB Equities; PT $20.45 (+)
* FUCHS SE Raised to Buy at M.M. Warburg; PT 50 euros (+)
* Granges Raised to Buy at ABG; PT 160 kronor
* Inficon Raised to Buy at Jefferies; PT 1,350 Swiss francs
* ING Raised to Market Perform at Bernstein (+)
* J. Martins Raised to Buy at Bryan Garnier; PT 21 euros (+)
* Kreate Raised to Accumulate at Inderes; PT 8 euros
* Linde Raised to Buy at TD Cowen; PT $515
* Lloyds Raised to Market Perform at Bernstein (+)
* Nel Raised to Hold at Jefferies; PT 3 kroner
* Public Power Raised to Buy at Goldman; PT 15.50 euros
* PVA TePla Raised to Buy at Jefferies; PT 19 euros
* Richemont Raised to Buy at TD Cowen; PT 163 Swiss francs
* SMA Solar Raised to Buy at Jefferies; PT 20 euros
* Wix.com Raised to Overweight at Morgan Stanley; PT $276
* Yara Raised to Buy at SpareBank; PT 370 kroner

>>> Down
* AIB Group Cut to Neutral at BNPP Exane (+)
* Aixtron Cut to Hold at Hauck & Aufhaeuser; PT 13.80 euros (+)
* Aluflexpack Cut to Hold at Berenberg; PT 15.95 Swiss francs
* AMD PT Cut to $150 from $185 at TD Cowen (+)
* Bankinter Cut to Underperform at Autonomous (+)
* Capricorn Energy Cut to Sell at Stifel; PT 240 pence (+)
* Constellation Brands Cut to Neutral at JPMorgan; PT $203
* Constellation Brands PT Cut to $220 from $280 at Morgan Stanley
* Corem Property Cut to Hold at Nordea
* Disney Cut to Neutral at President Capital Management; PT $115
* DWS Cut to Neutral at Goldman; PT 45 euros
* flatexDEGIRO Cut to Hold at Jefferies; PT 17 euros
* HSBC Cut to Underperform at Autonomous (+)
* Husqvarna Cut to Hold at Jefferies; PT 65 kronor
* Monte Paschi Cut to Neutral at Autonomous (+)
* SGL Cut to Hold at Jefferies; PT 4.40 euros
* STMicro Cut to Hold at TD Cowen; PT 24.50 euros
* STMicro ADRs Cut to Hold at TD Cowen; PT $25
* Verbio SE Cut to Hold at Jefferies; PT 11 euros
* Wise Cut to Neutral at New Street Research (+)

>>> Initiation
* Erste Rated New Overweight at Morgan Stanley; PT 72 euros
* Science Group Rated New Buy at Canaccord; PT 758 pence (+)

>>> Call
* Goldman Strategists See US Earnings Beats Moderating in 4Q, Goldman’s Oppenheimer Says 2025 Equity Outlook Is Complicated (+)
* Entain Should Gain Ground After Reiterating Guidance: Jefferies (+)
* weight at Morgan Stanley on CEE Region Growth Outlook
* Morgan Stanley’s Wilson Says Dollar to Drive Earnings Dispersion (+)
* Richemont Upgraded at TD Cowen on Positive Jewelry Outlook
* STMicro Has Difficult Setup in 2025, Cut to Hold at TD Cowen
* Tesco, Sainsbury Pullbacks Present Buying Opportunity: JPMorgan (+)

FT : Vienna tries to allay Brussels’ fears over looming far-right government

Vienna tries to allay Brussels’ fears over looming far-right government

Damage control
Austria’s caretaker chancellor Alexander Schallenberg is in Brussels today, aiming to assure EU chiefs that Vienna will remain a reliable partner even if its next government is led by a far-right politician with a penchant for Nazi slogans, writes Alice Hancock.

Context: Earlier this month, Austria’s centre-right chancellor Karl Nehammer stepped down after months-long coalition talks among centrist parties fell apart. That meant the far-right, pro-Russian Freedom party (FPÖ), which won most votes in September’s elections but had been sidelined from the negotiations, was asked to form the next government.

The country’s likely next leader, therefore, is the FPÖ’s Herbert Kickl, a divisive figure who has borrowed language from Austria’s dark Nazi past to boost his campaign.

Schallenberg, who served as foreign minister in the previous government, will meet European Council president António Costa and European parliament chief Roberta Metsola, as well as the EU’s top diplomat Kaja Kallas. The aim? To assuage their concerns about an Austrian tilt further to the right and towards Russia, potentially hindering EU support for Ukraine and blocking sanctions against Moscow.

“The EU is a guarantor of peace and security for Austria,” Schallenberg told the Financial Times in advance of his visit. “This is firmly anchored in the consciousness of the Austrian people.”

“When it comes to foreign and security as well as European policy, one can rely on Austria,” Schallenberg added. “We will continue to actively and constructively engage on a European and international level. This is all the more important in volatile times.”

Schallenberg’s ÖVP is likely to be the junior partner in an FPÖ-led governing coalition, although he has excluded himself from taking part in the next government.

Kickl’s ascent comes at a critical time for Brussels as it seeks to maintain support for core policies such as fighting climate change and supporting Kyiv in its fight against Moscow, amid the rise of far-right parties fanned by foreign support, including from Russia and the US tech billionaire Elon Musk.

Slovakia’s Robert Fico has joined Hungary’s Viktor Orbán in showing an increasingly open attitude to co-operation with Moscow, while different shades of far-right parties are also governing in countries such as Italy, Sweden and the Netherlands.

>>> Stoxx 600 Pre-Market Indications

  • Entain (6GI TH) +7.8%
    • Entain Maintains FY Adjusted Ebitda Forecast
  • Legal & General (LGI TH) +1.8%
    • Legal & Gen Grp: Legal & General submits planning for the £350m Bristol Temple Island masterplan regeneration project - Full
  • Evolution (E3G1 TH) +1.7%
  • EDP SA (EDP TH) +1.5%
  • Aker BP (ARC TH) +1.3%
  • ABN Amro (AB2 TH) +1.2%
  • BP (BPE5 TH) +1.2%
    • Watch Energy Stocks, Airlines as Crude Oil Hits Four-Month High
  • HSBC (HBC1 TH) +1.1%
    • NOTE: HSBC’s Ellam Will Be Named to Lead EU-UK Reset Talks: FT
  • Dassault Aviation (DAU0 TH) +1%
  • Stellantis (8TI TH) -1%
    • Jeep Owner’s Production Decisions Rest on Trump Tariff Plans
  • Argenx (1AE TH) -1.1%
    • Argenx Prelim 4Q Cash and Cash Equivalents About $3.40B
  • Air Liquide (AIL TH) -1.1%
  • CaixaBank (48CA TH) -1.2%
  • Philips (PHI1 TH) -1.3%
  • TAG Immobilien (TEG TH) -1.3%
  • Prosus (1TY TH) -1.3%
  • Nokia (NOA3 TH) -1.4%
  • Sanofi (SNW TH) -1.6%
    • Sanofi Says Sarclisa Gets China Approval for Multiple Myeloma
  • Monte Paschi (MPI0 TH) -2.6%