Home / Business and Economy / Bollore Urges UMG Rejection of Ackman's Bid
Bollore Urges UMG Rejection of Ackman's Bid
27 May
Summary
- Cyrille Bollore advised Universal Music Group management to reject Bill Ackman's proposal.
- Bollore cited the price was too low and the deal used UMG's own money.
- Ackman's management style was deemed incompatible with UMG's long-term strategy.
Cyrille Bollore, the chief executive of Bollore Group, has publicly urged Universal Music Group (UMG) management to reject a takeover proposal from activist investor Bill Ackman. Bollore articulated three primary objections to the deal, stating that the proposed price was "not there at all" and that the transaction was being funded with UMG's own money, not Ackman's. He also expressed reservations about Ackman's "abrupt" management style being incompatible with UMG's long-term strategy.
Bollore's endorsement is considered crucial for the potential acquisition. Pershing Square, Ackman's hedge fund, has valued UMG at approximately 55.8 billion euros ($64.4 billion). The proposal includes a cash component and a significant stock exchange. Ackman also intends to relocate UMG's primary listing to the United States to enhance investor appeal and liquidity. Despite these plans, Bollore's firm opposition suggests the deal faces significant hurdles.
