Ackman's Pershing Square offers over €50bn for Universal Music Group
Big news in the music business: Bill Ackman's Pershing Square has offered to buy Universal Music Group (UMG) in a deal valuing it at more than €50 billion.
UMG's share price has dropped more than a quarter in the past year, partly because of delays in its US stock listing and a big chunk owned by the Bollore Group.
Ackman's plan mixes cash and stock, hoping to give UMG a fresh start.
Shareholders get €9.4bn plus 0.77 shares
If approved, UMG would merge with Pershing Square's blank-check company and get listed on the New York Stock Exchange.
Shareholders stand to get €9.4 billion in cash plus 0.77 shares of the new company for each Universal share, a 78% premium compared with Universal's closing share price on Thursday.
The proposal also brings leadership changes: Michael Ovitz is set to become chair, with two representatives from Pershing Square joining the board, and Sir Lucian Grainge's hefty pay package is up for review.