economy
Universal Music targeted in takeover bid by hedge fund Pershing Square
American hedge fund Pershing Square, led by the activist investor Bill Ackman, announced Tuesday that it had offered to buy Universal Music Group in a merger, saying it believed the world's biggest music label was undervalued by stock markets.
TL;DR
- Pershing Square has offered to buy Universal Music Group (UMG) in a merger.
- The hedge fund believes UMG is undervalued by stock markets.
- The offer includes cash and shares, valuing UMG at 30.40 euros ($35) per share.
- The merged company would be listed on the New York Stock Exchange.
- UMG's stock price is believed to have languished due to issues unrelated to its music business performance.
- Pershing Square aims to close the deal by the end of 2026.