Universal Music Group has issued a statement in response to the $64 billion bid by Pershing Square Capital Management.
Pershing Square already has a stake in UMG. If the deal went ahead, the major would move from its Amsterdam listing to the New York Stock Exchange.
The non-binding proposal to the board would see Pershing Square acquire all outstanding shares of UMG through a business combination transaction, together with a “value creation plan designed to deliver significant benefits to UMG stakeholders” according to a statement. That plan includes the sale of UMG’s Spotify stake.
As part of the transaction, UMG’s board would be reshaped to include CAA co-founder and former Disney president Michael Ovitz as chairman, along with two representatives from Pershing Square in addition to members from the current UMG board.
The board of directors has complete confidence in UMG’s strategy and the leadership of Sir Lucian Grainge
UMG board
UMG’s board of directors confirmed it had received an unsolicited and non-binding proposal from Pershing Square.
“The board of directors, together with its advisors, will review the proposal in accordance with its fiduciary duties and analyse its implications for shareholders, employees, artists, songwriters and other stakeholders,” said a statement.
They continued: “The board of directors has complete confidence in UMG’s strategy and the leadership of Sir Lucian Grainge and the company’s management team. UMG will have no further comment on the proposal until the board of directors completes its review.”
