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UMG says Pershing does not have right to require Amsterdam delisting
Global Banking & Finance Review®
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(Reuters) -Universal Music Group (UMG) said on Saturday that billionaire Bill Ackman’s Pershing Square has no right to require the record label to become a U.S.-domiciled company or delist from Euronext Amsterdam.
(Reuters) -Universal Music Group (UMG) said on Saturday that billionaire Bill Ackman’s Pershing Square has no right to require the record label to become a U.S.-domiciled company or delist from Euronext Amsterdam.
Ackman had said in a post on X on Friday he would seek to delist investment firm Pershing Square, which holds a stake of around 10% in UMG according to LSEG data, and move the record label from Amsterdam, following attacks on Israeli soccer fans in the city.
Ackman said he had begun talks with UMG, on whose board he sits, to move its listing and headquarters to the United States. But UMG – whose roster of stars includes Taylor Swift – said that neither the company nor its board had been involved in the formulation of the views presented in Ackman’s X post.
“Pershing does not have any right to require UMG to become a U.S. domiciled company or delist from Euronext Amsterdam,” UMG said in a statement.
The company said it would in good faith comply with its contractual obligations regarding a U.S. listing, but any actions or decisions would be taken based on an analysis of what is in the best interests of all the shareholders.
Ackman had said in his X post that Pershing Square had a contractual right to cause UMG to be listed in the U.S. and he would exercise this right to achieve a U.S. listing no later than sometime next year.
UMG noted in its statement that as per its listing prospectus, Pershing has the right to request a U.S. listing provided that a Pershing entity sells at least $500 million worth of UMG shares as part of the listing.
Pershing Square, an investment holding company in which Ackman and his family own a 23% stake, did not immediately respond to a request for comment on UMG’s statement.
Pershing Square is also listed on the London Stock Exchange and most trading takes place in London.
(Reporting by Chandni Shah in Bengaluru; Editing by Andrew Cawthorne and David Holmes)
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