Cyrille Bolloré, CEO of Bolloré SE, has publicly advised Universal Music Group N.V. (OTC:UNVGY) to reject the $64 billion takeover bid from Bill Ackman, citing the undervaluation of the music label and the proposal’s misalignment with the company’s long-term strategy.
Bolloré expressed his disapproval of Ackman’s takeover proposal at Bolloré’s annual shareholder meeting on Wednesday, as reported by Reuters. The Bollore family, owning 18.4% of Universal Music Group, and Vivendi (OTC:VIVHY), with a 13.4% stake, have enough power to block the deal.
The Bollore family owns Vivendi, which was once the parent company of Universal Music Group, but after UMG's 2021 spin-off and stock market listing, Vivendi now holds less than a 10% stake in UMG.
The French CEO criticized the bid for relying on the company’s own cash. “We think the price is not there at all,” Bollore stated. “He (Ackman) is not making an offer with his own money. It is our money, the company’s money.”
Bolloré urged Universal Music's management to reject the proposal, saying he already considers it to have been effectively turned down.
