UMG’s largest shareholder says “the price is not there at all”
Bolloré Group CEO Cyrille Bolloré has urged Universal Music Group (UMG) to reject the $64 billion takeover bid by Bill Ackman’s Pershing Square.
Bolloré Group is UMG’s biggest shareholder, controlling 28% of the company through a direct stake and its holding in Vivendi.
When Ackman unveiled Pershing’s bid in April, he told investors, “Without Bolloré, we don’t have a transaction.”
Speaking at the Bolloré Group’s annual shareholders meeting on May 27, Bolloré highlighted several areas of concern with the takeover.
He believes the $64 billion offer undervalues UMG, saying “the price is not there at all.”
He also criticized the financing structure, arguing that Ackman is effectively using UMG’s own money to fund the acquisition. (For example, the Pershing Square CEO had proposed selling UMG’s $3.1 billion Spotify stake to help fund the cash consideration of the bid.)
Bolloré questioned whether this is the right time to sell, saying UMG still has major long-term growth potential in areas such as superfans, live music and merchandising.
While acknowledging Ackman’s investment smarts, Bolloré also questioned whether he is “compatible with the management” of the company, and raised concerns about Pershing gaining too much strategic influence.
Cyrille Bolloré: “I don’t think that this offer is positive, I don’t think it would be positive for the company, and I encourage UMG management to reject that offer.”
