UMG says Pershing does not have right to require Amsterdam delisting (updated)

Pershing Square Holdings

09/11/2024 19:18

(Adds details, background and quote in paragraph 3 onwards)
       Nov 9 (Reuters) - Universal Music Group (UMG)  UMG.AS 
said on Saturday that billionaire Bill Ackman's Pershing Square
 PSH.AS  has no right to require the record label to become a
U.S.-domiciled company or delist from Euronext Amsterdam.
    Ackman had said in a post on X on Friday he would seek to
delist investment firm Pershing Square, which holds a stake of
around 10% in UMG according to LSEG data, and move the record
label from Amsterdam, following attacks on Israeli soccer fans
in the city.
    Ackman said he had begun talks with UMG, on whose board he
sits, to move its listing and headquarters to the United States.
But UMG - whose roster of stars includes Taylor Swift - said
that neither the company nor its board had been involved in the
formulation of the views presented in Ackman's X post.
    "Pershing does not have any right to require UMG to become a
U.S. domiciled company or delist from Euronext Amsterdam," UMG
said in a statement.
    The company said it would in good faith comply with its
contractual obligations regarding a U.S. listing, but any
actions or decisions would be taken based on an analysis of what
is in the best interests of all the shareholders. 
    Ackman had said in his X post that Pershing Square had a
contractual right to cause UMG to be listed in the U.S. and he
would exercise this right to achieve a U.S. listing no later
than sometime next year. 
    UMG noted in its statement that as per its listing
prospectus, Pershing has the right to request a U.S. listing
provided that a Pershing entity sells at least $500 million
worth of UMG shares as part of the listing.
    Pershing Square, an investment holding company in which
Ackman and his family own a 23% stake, did not immediately
respond to a request for comment on UMG's statement.  
    Pershing Square is also listed on the London Stock Exchange
and most trading takes place in London.

 (Reporting by Chandni Shah in Bengaluru; Editing by Andrew
Cawthorne and David Holmes)
 ((Chandni.shah@thomsonreuters.com;))