Pershing Square Behind Burger King Sale Plan

Apr 5 2012 | 12:20pm ET

Pershing Square Capital Management doesn't own Burger King. But it's selling the fast-food chain.

Pershing Square's William Ackman has been instrumental in bringing Burger King back to the public markets. He persuaded 3G Capital Management, which took BK private a year-and-a-half ago and in which Pershing Square is an investor, to advance its plans. And he's offered the blank-check company he co-founded, Justice Holdings, which raised money last year to buy a big company.

Under the plan unveiled Tuesday, Burger King will merge with Justice within two months. 3G will retain 71% of the combined company's shares.

So, how did Ackman do it? He convinced 3G that merging BK with a shell company would be better than an initial public offering, which he said would be arduous and too much of a distration.

"The process of going public can really damage a business," Ackman said yesterday. And he praised the job 3G did in boosting BK's efficiency, taking potshots at its biggest rival, in the process.

Pointing to McDonald's huge corporate campus and its Hamburger University, Ackman asked, "Is McDonald's an enormously bloated company?"

"Yes."


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note