Bill Ackman forced to restructure Universal Music deal

Expense Ackman’s Pershing Square has actually been required to reorganize a $4bn offer to purchase a 10 percent stake in Universal Music, the business behind artists such as Taylor Swift, after United States regulators challenged the initial shape of the offer.

Pershing had actually concurred last month to purchase the stake from Vivendi, Universal’s owner, through an unique function acquisition business called Pershing Square Tontine Holdings. However in a declaration on Monday Ackman’s business stated the Securities and Exchange Commission had actually discovered issues with the 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 stated on Monday.

It added: “Yet, despite the inability of PSTH to consummate the UMG transaction, our counterparty was not left at the altar. Pershing Square will be fulfilling PSTH’s commitment to Vivendi.”

It stated that Pershing Square planned to be a long-term shareholder in Universal, which is due to list in Amsterdam.

Jobber Wiki author Frank Long included to this report.