Universal Music Group’s Board Rejects Pershing Square Offer: ‘It Fundamentally Undervalues UMG’

Universal Music Group (UMG) said on Friday (May 29) its board rejected investment firm Pershing Square’s merger offer that would have moved UMG’s primary stock listing to a U.S.-based exchange, saying the April 7 bid “fundamentally and materially undervalues UMG and will not deliver superior value creation,” in a press release.

Universal Music Group’s Board Rejects Pershing Square Offer: ‘It Fundamentally Undervalues UMG’. Universal Music Group (UMG) said on Friday (May 29) its board rejected investment firm Pershing Square’s merger offer that would have moved UMG’s primary stock listing to a U.S.-based exchange, saying the April 7 bid “fundamentally and materially undervalues UMG and will not deliver superior value creation,” in a press release. The decision follows comments from UMG’s largest shareholder, the Bolloré Group, which owns a combined 28% of UMG’s shares. Cyrille Bolloré, CEO of the Bolloré Group, urged the board to reject the offer, which needs Bolloré’s support to succeed, arguing the price was too low and that Pershing’s takeover bid was structured as an offer “with our money, the company’s money...not with [Pershing founder Bill Ackman’s] own mo...