Bill Ackman’s Pershing Square Capital Management has made an offer to acquire Universal Music Group (UMG) in a deal valuing the company at over €50 billion (£44bn/$10.8 billion). The proposal includes €9.4 billion in cash plus shares.
The non-binding offer values UMG at €30.40 per share, representing a 78% premium to its recent closing price. Ackman believes UMG has been undervalued due to factors like a significant stake held by the Bolloré Group and delays in a planned US listing.
The transaction, which requires shareholder approval, would establish a new Nevada corporation listed on the New York Stock Exchange. UMG is home to prominent artists including Taylor Swift and Elton John.