Universal Music Group’s board rejected a massive buyout attempt on Friday, turning down an unsolicited acquisition offer from Bill Ackman’s investment firm Pershing Square.
The investment company had put forward a combined cash-and-stock deal in April through its acquisition arm, pricing Universal Music shares at approximately €30.40 each in a transaction valued at €55.75 billion ($65.03 billion), based on Reuters analysis.
The music company dismissed Pershing’s offer, declaring that the proposal “fundamentally and materially undervalues UMG and will not deliver superior value creation.”
Universal Music Group represents some of the world’s biggest recording artists, including Taylor Swift, Billie Eilish and Kendrick Lamar. The company plans to relocate its stock listing from Amsterdam to New York, which should open doors for additional investors such as index funds to purchase shares and potentially boost earnings while increasing the company’s market value.
($1 = 0.8573 euros)
