Restaurant Brands drops 2% after Bill Ackman's big 'block' sale

Key Points
  • Credit Suisse managed the sale over two hours Tuesday evening.
  • Pershing Square sold 10 million shares at $61 each.
Bill Ackman, Pershing Square
Richard Brian | Reuters

Pershing Square Capital Management, the hedge fund firm managed by Bill Ackman, sold $610 million worth of its stake in Restaurant Brands International through a block trade, according to two people familiar with the matter.

Pershing Square sold 10 million shares of Restaurant Brands on Tuesday night for $61 per share, said the people, who asked not to be named discussing private trading information. Restaurant Brands, formed by the 2014 merger of Burger King and Tim Hortons, declined almost 2 percent at the market open to about $60.97 per share.

Restaurant Brands has gained 27.9 percent this year. Pershing, its largest shareholder, sold some of its stake because of the runup in the stock price – the position had become too large in Pershing Square's portfolio, one of the people said.

Ackman's firm runs a highly concentrated book of stocks and often takes activist positions seeking significant change.

After the block trade, Pershing Square still owns about 14 percent of common stock, one of the people said. The block trade, which was completed in two hours, was managed by Credit Suisse, the two people said.