Overview
- Pershing Square executed an overnight placement of about 80 million UMG shares, roughly 4.5% of the company, with Bank of America marketing the sale in a €17.66 to €18.62 per‑share range.
- The sale follows UMG’s board unanimously rejecting Pershing Square’s unsolicited April 7 takeover proposal on May 29, saying the offer fundamentally and materially undervalued the company.
- Cyrille Bolloré and related Vivendi shareholders strongly opposed Ackman’s bid and hold influential stakes that helped block the deal, leaving the board in control of strategic choices.
- UMG has signaled its preferred path to address valuation concerns by expanding buybacks and partially monetizing its Spotify stake, and the company repurchased a portion of shares from Pershing under its existing program.
- Ackman first built a near‑10% UMG position in 2021, served on the board until May 2025, and trimmed to about 4.5% before this exit, removing a high‑profile activist push for a U.S. listing and faster balance‑sheet changes.