Ackman Eyes Building an Insurer With Howard Hughes Bet (2)

Bill Ackman’s Pershing Square struck a deal to boost its Howard Hughes Holdings Inc.stake to nearly 47% as it weighs plans to build an insurer and expand the real estate company’s remit.

Ackman’s company will invest $900 million into Howard Hughes, purchasing 9 million of newly issued shares for $100 apiece, according to a statement Monday. That’s a 48% premium to the stock’s closing price on Friday.

Howard Hughes was up about 3.8% to $70.06 at 10:36 a.m. in New York trading Monday after Pershing Square’s investment was announced.

Ackman is seeking to turn Howard Hughes from a ...