Bill Ackman abandons Spac plan to take $4bn stake in Universal Music

Monday - 19/07/2021 13:20
Hedge fund manager changes course to buy into world’s biggest music label after SEC intervention
The Securities and Exchange Commission has raised issues over a proposed deal by Bill Ackman’s Pershing Square Tontine Holdings to buy a 10% stake in Universal Music © AP
The Securities and Exchange Commission has raised issues over a proposed deal by Bill Ackman’s Pershing Square Tontine Holdings to buy a 10% stake in Universal Music © AP

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.

Read More (...)

Source:

 Keywords: Lady Gaga, Taylor Swift

Total notes of this article: 0 in 0 rating

  Reader Comments

You might also be interested in:
You did not use the site, Click here to remain logged. Timeout: 60 second