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00:02Activist investor Pershing Square said Tuesday it plans to buy Universal Music Group in a cash
00:06and stock deal valued at $64.4 billion, according to CNBC. The proposal offers shareholders $10.85
00:13billion in cash and 0.77 shares of new stock per UMG share. The offer values UMG at 30.4
00:20per share,
00:20a 78% premium to its April 2 closing price. UMG shares rose 11% and are down 23%
00:26this year.
00:27CEO Bill Ackman said UMG has delivered strong performance, but its stock has lagged due to
00:31unrelated issues that the transaction can address. He cited uncertainty around Ballor Group's 18% stake,
00:37a delayed U.S. listing, and shareholder communication issues as reasons for UMG's
00:41underperformance. The combined company plans to list on the New York Stock Exchange.
00:44For all things money, visit Benzinga.com.
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