"Ackman has a particular interest in the topic, as his firm owns 210 million shares across the two GSEs 10% of them preferred shares. Pershing Square remains the largest common shareholder of both companies. Recently, other investors have voluntarily reported their stakes, including Capital Group, Morgan Stanley, Aegon, Brighthouse Financial and Banco Santander, while many retail investors have also purchased shares."
"We do not believe that a sale of a piece of Fannie and Freddie to the public is either feasible or really desirable at this moment in time, Ackman said. We think that there are a number of things that need to happen in order for those [companies] to have a successful public offering, let alone an offering which will maximize value for the two companies."
Ackman’s firm owns 210 million shares across Fannie Mae and Freddie Mac, about 10% in preferred shares, and Pershing Square is the largest common shareholder. Other institutional investors such as Capital Group, Morgan Stanley, Aegon, Brighthouse, and Banco Santander, plus retail investors, have stakes. The administration has aimed to sell part of the government’s shares, with officials indicating a potential 5% offering, but analysts and Ackman view a near-term sale as infeasible. Pershing Square recommends lowering capital requirements to roughly 2.5%, converting the PSPAs into a paid-for backstop, clarifying FHFA authority, and recruiting and incentivizing management and boards—steps that will take time before a successful offering.
Read at www.housingwire.com
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