William Acman’s Persing Square Hedge Fund replaces his SPAC with the acquisition of Universal Music Stake

Image: Billie Eilish.Source: Universal Music Group

Bill Ackman, a Billionaire investor, has been hit by a serious backlash from regulators and investors on the trading structure through Bivendy’s Universal Music Group (UMG) through its main hedge fund rather than a special-purpose acquisition company (SPAC). I plan to buy up to 10% of.

Under the deal announced last month, French media giant Vivendi SE has made 10% of the Universal Music Group, home of Taylor Swift, Drake and Billie Eilish, Ackman’s SPAC, Pershing Square Tontine Holdings Ltd (NYSE:). PSTH), $ 4 billion.

Contract — Evaluated Music Company Over $ 42 billion — Scheduled to be completed by September, it will be the largest SPAC transaction ever.

so update Persing Square Holdings’ hedge fund will replace SPAC as an investor in universal music, Ackman told shareholders on Monday.

He further wrote that the US Securities and Exchange Commission (SEC) raised issues on several aspects of the transaction, but did not reveal what those concerns were. SEC has strengthened it Scrutiny After a dramatic increase in SPAC use, SPAC has occurred entirely in recent months.

During an interview with CNBC“The SEC has raised a trading killer. In their view, the trading does not meet the SPAC rules of the New York Stock Exchange, which means I call it the dagger at the heart of the trading. Said that it was. ”

Investors also questioned the deal, Acman said, saying PSTH shares have fallen 18% since the plan was announced on June 4.

“We underestimated the reaction of some shareholders to the complexity and structure of our transactions, and we also called investors who cannot hold foreign securities, who are margin trading, or our stock. We underestimated the potential impact of this transaction on investors who own the option.

In another statement on Monday, Vivendi Pershing Square Holdings’ investment is likely to be 5% to 10% of Universal’s capital, and Vivendi said that if it is less than 10%, it will open up to other investors to make up for the shortfall.

The deal precedes Vivendi’s plans to spin off UMG by listing on Euronext Amsterdam in September.

Despite withdrawing the deal, Acman claimed that Vivendi was not “left on the altar” and that Persing Square Holdings would become a long-term shareholder after UMG’s listing.

PSTH is currently planning to pursue a “traditional” SPAC merger, with 18 months to complete a new deal unless shareholders vote to allow the extension.

“I’m disappointed with this result, but I continue to believe that PSTH’s unique scale and favorable structure will allow us to find transactions that meet the criteria of business quality, lasting growth and fair price,” Ackman said. Mr. says.

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