Cyrille Bollore, chief executive of the Bollore Group, has publicly urged Universal Music Group's management to reject a takeover proposal from billionaire investor Bill Ackman, citing three significant objections. Bollore contends the offer's valuation is too low, that it relies on UMG's own capital rather than Ackman's, and that Ackman's management approach is fundamentally incompatible with the music label's long-term strategic vision.
Bollore's Stance at Annual Meeting
Speaking to shareholders at the group's annual meeting, Bollore was unequivocal. "We think the price is not there at all," he stated. He further criticized the financial structure, adding, "He is not making an offer with his own money. It is our money, the company's money." Regarding Ackman's leadership style, Bollore expressed reservations: "I am not sure he is compatible with the management of this company — he is more abrupt, faster."
Offer Effectively Rejected
Bollore declared the offer as good as rejected, stating, "I encourage the management of Universal Music to reject it. As far as I am concerned, it is as if it has been rejected." His backing is crucial, as Ackman, who runs hedge fund Pershing Square, has acknowledged that "without Bollore, we don't have a transaction," underscoring Bollore's effective veto power over any potential deal.
Details of the Proposal
Pershing Square's proposal values UMG at around $64.4 billion, a 78% premium to UMG's closing price on April 2. Under the terms, shareholders would receive $10.85 billion in cash and 0.77 shares of new stock for each UMG share held. The plan also includes relocating UMG's primary listing from Amsterdam to the United States, which Ackman argues could attract a broader pool of institutional investors and improve liquidity.
