Universal Music Group declines Pershing Square takeover proposal

May 29 (Reuters) – Universal Music Group’s board on Friday declined an unsolicited takeover proposal from Bill Ackman’s Pershing Square.

In April, Pershing Square had proposed a cash-and-stock offer through its acquisition vehicle, valuing Universal Music at around €30.40 per share and making the deal worth €55.75 billion ($65.03 billion), according to Reuters calculations.

Universal rejected Pershing’s bid, stating that the proposal “fundamentally and materially undervalues UMG and will not deliver superior value creation,” adding that it was “not in the best interests of UMG, its shareholders, artists, songwriters, employees and other stakeholders.”

Pershing did not immediately respond to a Reuters request for comment.

Universal Music Group — the company behind international superstars including Taylor Swift, Billie Eilish and Kendrick Lamar — is expected to move its listing to New York from Amsterdam, paving the way for more investors, including index funds, to own the company and ultimately lead to more robust earnings and a higher valuation.

Ackman initially pursued Universal Music Group in 2021 in a deal through a shell corporation designed to take a private company public, but dropped it after U.S. regulatory scrutiny. Pershing Square instead became a major UMG investor, and Ackman served on its board until last year.

($1 = 0.8573 euros)

(Reporting by Juby Babu in Mexico City; Editing by Alan Barona)