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Pershing Square Sells Remaining Universal Music Stake After Takeover Bid Rebuffed

Ackman’s exit places a large block of stock on the market and creates a potential short-term overhang for UMG shares.

Universal Music Group logo and stock graph seen displayed in this illustration taken, May 3, 2022. REUTERS/Dado Ruvic/Illustration

Overview

  • Pershing Square placed roughly 80 million Universal Music shares for sale on Wednesday, June 3, shrinking its position to zero from about 4.5% and marking an effective retreat from the takeover campaign.
  • UMG’s board unanimously rejected Bill Ackman’s unsolicited cash-and-stock proposal on Friday, May 29, calling the offer fundamentally insufficient and leaving management in control of strategy.
  • Ackman’s April 7 proposal valued Universal Music at about €55.75 billion (roughly $64–65 billion) and relied on monetizing part of UMG’s Spotify stake and a U.S. listing to help fund the deal.
  • How Pershing Square sells the shares matters for markets because a large overnight placement typically trades at a discount and could push UMG’s Amsterdam-listed stock lower while buyers absorb the supply.
  • The sale reduces activist pressure for structural change from Pershing Square and leaves the Bolloré/Vivendi shareholder bloc and UMG management to pursue alternatives such as expanded buybacks and partial Spotify monetization.