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The board of directors at Universal Music said the offer significantly undervalued the company and failed to serve the best interests of shareholders and other stakeholders. Universal Music said its board unanimously decided to reject the takeover offer submitted by Pershing Square on April 7 of this year.
The board added that there was strong support from shareholders for the decision to reject Ackman’s offer to buy Universal Music. For Bill Ackman, a prominent hedge fund manager with a big social media following, the rejection is a blow.
The Next Warren Buffett?
Ackman’s bid for Universal Music comes as the investor says he is trying to turn his company Pershing Square into a diversified holding company and investment vehicle similar to Berkshire Hathaway (BRK.B). Ackman has praised Berkshire Hathaway’s Warren Buffett and his investing acumen and track record.
