Universal Music Group’s (UMG) board unanimously rejected an unsolicited €55.75 billion ($65.03 billion) takeover proposal from Bill Ackman’s Pershing Square Capital Management. The board stated the offer significantly undervalues the company and fails to serve the interests of shareholders and artists. Pershing Square initially submitted the proposal in early April.
The offer proposed a cash-and-stock transaction through an acquisition vehicle. Ackman argued that taking UMG private would unlock value by resolving stock price stagnation caused by non-core issues. He specifically noted uncertainty regarding a major shareholder’s stake and a delayed U.S. stock market listing.
UMG will maintain its current strategy, including an active share buyback program. The company is also considering shifting its primary stock listing from Amsterdam to New York to attract more investors.