Overview
- Pershing Square announced a takeover proposal that values Universal Music Group at about €30.40 per share, a premium of 78% to recent prices.
- The offer gives each UMG shareholder €5.05 in cash per share plus 0.77 share in a new company for each UMG share.
- Pershing Square plans to merge UMG with its U.S. acquisition vehicle SPARC Holdings, with the resulting company targeted for a New York Stock Exchange listing.
- Investors lifted UMG shares as much as 24% to €21.25 after the news, while major shareholder Vivendi gained about 8.6%.
- The proposal still requires support from shareholders and regulators, and it targets the world’s largest record label with artists such as Taylor Swift, BTS and Billie Eilish.