Pershing Square Capital Management LP has had its eyes on Domino’s Pizza Inc. for quite a while and now owns nearly 6% in the food chain, the WSJ reported.
- Billionaire investor Bill Ackman said Domino’s is among “super-durable growth companies.”
- Ackman said he was attracted by Domino’s delivery infrastructure that is self-reliant compared with other chains.
- Pershing Square got its holdings during the recent dip in Domino’s stock.
- Domino’s stock surged as much as 4% after the news circulated. The stock was up 1.5% at $428.54 late morning to drive the company’s market value up $17 billion.
- Ackman also said an acquisition is in the works for his special-purpose acquisition company Pershing Square Tontline Holdings Ltd.
- Discussions for the acquisition started in November, with the deal expected to be completed in the coming weeks.
- Ackman did not identify the party involved but said it is an iconic private company.
- The investor also said Pershing Square will stay in New York which he said was an “extremely desirable place to live.” Other hedge funds have moved to other states with lower taxes.
DPZ:NYSE is up 0.82%.