Overview
- Universal Music Group said its board is reviewing Pershing Square’s unsolicited, non-binding proposal in line with its fiduciary duties.
- Bill Ackman said the bid hinges on Vincent Bolloré, who holds effective blocking power with just under 32% through direct and Vivendi stakes.
- The plan calls for a U.S. relisting on the New York Stock Exchange, Michael Ovitz as board chair, and continuity under CEO Sir Lucian Grainge.
- Pershing Square proposes that shareholders choose cash or shares in a new U.S.-listed entity, and Ackman owns roughly 4.7% to 5% after serving on UMG’s board until May 2025.
- Analysts, including JPMorgan, doubt the company will endorse a proposal they say undervalues UMG and expect pushback to the offer.