Universal Music Group‘s board of directors has rejected Bill Ackman and Pershing Square’s $64 billion acquisition proposal, saying Friday that the deal “is not in the best interests of UMG, its shareholders, artists, songwriters, employees and other stakeholders.”
“After careful review with the assistance of outside financial and legal advisors, the Board has rejected the proposal because it fundamentally and materially undervalues UMG and will not deliver superior value creation,” the board said in a statement. “The Board has heard from many of UMG’s shareholders and other stakeholders and believes there is a strong consensus supporting the Board’s decision.”
Reps for Ackman and Pershing Square didn’t immediately respond to request for comment.
In a statement, UMG chairman of the board Sherry Lansing said that UMG “has built an unrivalled position in the music industry through clear vision and strong execution.”
“The Board has full confidence in Sir Lucian and his team’s ability to deliver sustainable growth and continued value creation for all stakeholders,” Lansing said.
