Pershing Square Exercises Warrants on Platform Specialty Products ~ market folly

Wednesday, March 12, 2014

Pershing Square Exercises Warrants on Platform Specialty Products

Bill Ackman's hedge fund firm Pershing Square Capital has updated its stake in Platform Specialty Products (PAH).  Per a Form 4 filed with the SEC, Pershing Square has revealed that they exercised their warrants on the name.

They owned 12,500,0001 warrants and each 3 warrants entitles the holder on exercise to buy 1 share of common stock for $11.50.  As such, Pershing received 4,166,665 shares of PAH.  The transaction took place on March 7th, 2014.

After this, Pershing Square owns 33.3 million shares of Platform Specialty Products.  Pershing disclosed their PAH stake in January once shares listed on the NYSE.  However, keep in mind that Pershing owned a stake prior to this listing.

We've also highlighted how fellow hedge fund Blue Ridge Capital also owns a PAH stake as well. 

And then of course Martin Franklin of Jarden and Nicolas Berggruen of Berggruen Holdings are involved too.  Platform was formed with the intent to acquire companies and their first deal was MacDermid, a specialty chemicals manufacturer for $1.8 billion.

This isn't the first time Ackman has worked with Berggruen either.  They teamed up on Justice Holdings, which then bought Burger King.

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