Bollore urges UMG to reject Ackman's $64 billion bid
Bollore's Response to Ackman's Takeover Proposal
By Mathieu Rosemain and Leo Marchandon
PARIS, May 27 (Reuters) - Bollore CEO Cyrille Bollore on Wednesday urged Universal Music Group to reject Bill Ackman's takeover proposal, saying the offer undervalued the label, relied on the company's own cash and did not fit its long-term strategy.
Shareholder Meeting Insights
Speaking at Bollore's annual shareholder meeting, Cyrille Bollore said the Bollore family saw no reason to accept Pershing Square's $64 billion bid. Vincent Bollore owns 18.4% of UMG and Vivendi holds 13.4%, enough to block the deal.
Concerns Over Offer Value
"We think the price is not there at all," Cyrille Bollore said. "He is not making an offer with his own money. It is our money, the company's money."
The remarks were the first direct public comments from a key UMG shareholder on Ackman's unsolicited approach.
Potential Sale and Share Price Considerations
No Pressure to Sell
NO PRESSURE TO SELL
Cyrille Bollore added that Bollore SE was not opposed to the sale of a "few percent" of shares in UMG, but only at a higher price.
Price Threshold for Selling
"If the share price were around 27–28 euros, it would certainly be worth considering selling a portion of the holding," he said.
UMG declined to comment. A representative for Ackman was not immediately available for comment.
Ackman's Approach and Family's Position
Ackman said in April that his first call before launching the bid was to the Bollore family. He also said that, without the Bollore family's backing, "we don't have a transaction."
Bollore's Financial Position and Strategic Vision
Cyrille Bollore said the family was under no pressure to sell, adding that Bollore had 5.6 billion euros in cash and was distributing 4.5 billion euros to shareholders. He also criticised Ackman's management style and said he supported UMG's current strategy of expansion and acquisitions.
"I encourage the management of Universal Music to reject it," Cyrille Bollore said. "As far as I am concerned, it is as if it has been rejected."
Details of Ackman's Proposal
Ackman's plan includes 9.4 billion euros in cash plus 0.77 shares of new stock for each UMG share, and a shift of UMG's main listing from Amsterdam to the United States. UMG said in April it would sell half its stake in Spotify after Ackman argued the market was not fully valuing that holding.
($1 = 0.8587 euros)
(Reporting by Matthieu Rosemain in Paris and Leo Marchandon in Gdansk; editing by Dominique Vidalon and Matt Scuffham)
