Overview
- UMG shares jumped about 12% Tuesday after Pershing Square filed a non-binding bid valuing the label at €30.40 per share, a 78% premium to its last close.
- Shareholders would receive €5.05 in cash plus 0.77 shares of a new company for each UMG share, with total cash outlay of €9.4 billion.
- The plan would merge UMG with Pershing Square’s SPARC into a Nevada corporation listed on the NYSE, report under U.S. GAAP, target index eligibility, and, if approved, close by late 2026.
- Pershing proposes a board refresh that names Michael Ovitz as chairman and adds two Pershing affiliates, alongside a new employment and pay arrangement for CEO Lucian Grainge.
- The deal needs broad investor support, with Bolloré’s roughly 18% stake seen as pivotal, and UMG and key holders have not publicly endorsed the proposal.