Universal Music targeted in takeover bid by hedge fund Pershing Square

American hedge money Pershing Square, led by the activistic capitalist Bill Ackman, announced Tuesday that it had offered to bargain Universal Music Group successful a merger, saying it believed the world's biggest euphony statement was undervalued by banal markets.

Pershing Square said its connection to Universal shareholders included 9.4 cardinal euros ($10.9 billion) successful currency positive 0.77 shares successful the caller entity for each UMG share. After a merger with Pershing Square SPARC Holdings, an acquisition company, the caller entity would beryllium listed connected the New York Stock Exchange. Universal presently trades connected the Amsterdam Stock Exchange.

The Reuters quality bureau says Pershing Square's cash-and-shares connection values Universal Music astatine astir 30.40 euros ($35) per share, 78% implicit its past closing terms of 17.10 euros and making the woody worthy 55.75 cardinal euros ($64.31 billion).

The merged institution would boast a unchangeable of apical artists including Taylor Swift, The Weeknd, Lady Gaga, Billie Eilish and Drake.

Pershing Square hopes to adjacent the woody by the extremity of 2026.

"UMG's banal terms has languished owed to a operation of issues that are unrelated to the show of its euphony business," Ackman said successful a statement.

The institution pointed to uncertainty astir French conglomerate Bollore's plans for its 18 percent involvement successful Universal, hold successful listing connected the U.S. banal market, and "underutilization of UMG's equilibrium sheet" among concerns that person held backmost the shares' performance.