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3 year oldBill Ackman abandons Spac plan to take $4bn stake in Universal Music
July 19, 2021 at 13:20
Hedge fund manager changes course to buy into world’s biggest music label after SEC intervention
Bill Ackman’s special purpose acquisition company has abandoned plans to buy a $4bn stake in Universal Music Group after a backlash from regulators and investors.
The acquisition of a 10 per cent stake in Universal Music, home to artists such as Taylor Swift and Lady Gaga, will instead be done by the billionaire’s Pershing Square hedge fund.
The restructuring marks the end of Ackman’s efforts to strike a first-of-its-kind deal through his Spac, Pershing Square Tontine Holdings, after it agreed last month to buy the stake from Vivendi, Universal’s owner.
In a letter to PSTH investors on Monday, Ackman blamed problems that regulators at the US Securities and Exchange Commission had with the unconventional structure of the Spac deal.
“Our decision to seek an alternative initial business combination (IBC) was driven by issues raised by the SEC with several elements of the proposed transaction — in particular, whether the structure of our IBC qualified under the NYSE rules,” Pershing said.
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The acquisition of a 10 per cent stake in Universal Music, home to artists such as Taylor Swift and Lady Gaga, will instead be done by the billionaire’s Pershing Square hedge fund.
The restructuring marks the end of Ackman’s efforts to strike a first-of-its-kind deal through his Spac, Pershing Square Tontine Holdings, after it agreed last month to buy the stake from Vivendi, Universal’s owner.
In a letter to PSTH investors on Monday, Ackman blamed problems that regulators at the US Securities and Exchange Commission had with the unconventional structure of the Spac deal.
“Our decision to seek an alternative initial business combination (IBC) was driven by issues raised by the SEC with several elements of the proposed transaction — in particular, whether the structure of our IBC qualified under the NYSE rules,” Pershing said.
Read More (...)
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