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

Steinbrugge: Will Hedge Funds Help or Hurt During the Next Market Correction?

Sep 7 2016 | 11:55pm ET

Most investors have become accustomed to quick rebounds when markets correct, but...

Lifestyle

Quattrex Sports AG Debuts Soccer-Focused UCITS Fund

Sep 9 2016 | 9:54pm ET

Innovative alternative investment company Quattrex Sports has unveiled a new UCITS...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...