Overview
- Bill Ackman said a public share sale is neither feasible nor desirable now and urged recognizing senior preferred repayment, exercising Treasury’s 79.9% warrants, and relisting on the New York Stock Exchange.
- He estimated a combined market value approaching $400 billion with the Treasury stake worth in excess of $300 billion under his proposal.
- Ackman said conversations with the NYSE suggest relisting could be completed in a matter of weeks since the companies already trade over the counter.
- He argued a successful offering requires revisiting the 4.5% capital rule toward roughly 2.5%, clarifying FHFA authority, modifying the senior preferred stock purchase agreements, and upgrading governance.
- The FHFA and the administration continue to evaluate privatization options, including a small stake sale and possible 2025 offering, while a merger is viewed as unlikely and officials have not adopted Ackman’s plan.