Bill Ackman plans to create ‘the current Berkshire Hathaway’ with the Howard Hughes deal.

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Bill Ackman’s Pershing Square has already offered to buy his non-owned stake in real estate developer Howard Hughes Holdings, which the billionaire investor said could turn the Texas-based company into a “modern-day Berkshire Hathaway.”

Ackman believes Howard Hughes, which owns properties in Las Vegas, Texas and Hawaii, is on the verge of buying other companies or property operations to generate cash flow from its real estate.

Pershing Square is offering Howard Hughes shareholders $85 per share, Ackman said in a letter to the company’s board on Monday. The shares closed at $71.78 on Friday, valuing the company’s equity at $3.6 billion.

Pershing owns about 38 percent of Howard Hughes shares.

Shares in Howard Hughes rose more than 10 percent in pre-market trading following the announcement.

This is a developing story.