UMG Rejects Pershing Square's Push to Delist from Euronext Amsterdam
Billionaire investor Bill Ackman has announced plans to remove Pershing Square Holdings from the Euronext Amsterdam exchange and is pushing Universal Music Group (UMG) to do the same, citing concerns about recent antisemitic incidents in Amsterdam and potential business benefits of relocating to the US.
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Key Points:
- Pershing Square Holdings (23% family-owned by Ackman) seeks board approval to delist from Euronext
- Ackman owns 10.25% of UMG and serves on its board
- Pershing Square has contractual rights to initiate a US listing for UMG
UMG's Response:
- Confirms no prior discussion with Ackman before his announcement
- Acknowledges Pershing's right to request US listing, contingent on $500 million share sale
- States Pershing cannot force UMG to become US-domiciled or delist from Euronext
- Will evaluate any changes based on maximizing value for all shareholders
Market Impact:
- UMG currently trades at a "large discount to intrinsic value" according to Ackman
- Limited liquidity due to absence from NYSE/NASDAQ
- Not eligible for S&P 500 index inclusion
Timeline: US listing expected "no later than sometime next year" according to Ackman's statement on X/Twitter.
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