Pershing Square Holdings Share News (PSH)

May 29 (Reuters) - Universal Music Group's board on Friday unanimously rejected ​an ‌unsolicited takeover proposal from Bill Ackman's Pershing Square Capital Management , saying it was not in the ⁠best interests of shareholders, artists, or the company. The board ⁠said it took time to review ​Pershing Square's proposal, and found that it "materially undervaues" the music company and would not fuel its growth. Universal's largest individual shareholder, Bollore, had urged the board to reject Ackman's offer. Pershing Square declined ​comment ‌on the board's decision. In April, Pershing Square proposed a cash-and-stock offer through its acquisition vehicle, valuing Universal Music at around €30.40 per share and making the deal worth €55.75 billion ($65.03 billion), according to Reuters calculations. Even as the music industry is flourishing, Universal Music Group's share ​price has lagged, something Ackman said his proposed deal would fix.

Universal Music Group — the company ‌behind international superstars including Taylor Swift, Billie Eilish and Kendrick Lamar — initiated a stock buyback program, announced it would sell half its ‌stake in the Spotify music service, and said it would enhance its financial disclosue, so investors could better understand its business.

The company is expected to move its listing to New ​York from Amsterdam, paving the way for more investors, including index funds, to own the company and ultimately ‌lead to more robust earnings and a higher valuation.

Ackman initially pursued Universal Music Group in 2021 in a deal through a shell corporation designed to take a private company public, but ⁠dropped ⁠it after U.S. regulatory scrutiny. Pershing Square instead became a ‌major UMG investor, and Ackman served on its board until last year.

"UMG has built an unrivaled position in ​the music industry through ​clear vision and strong execution," Universal Music Group board Chairman Sherry ‌Lansing said in a statement. "The Board has full confidence in Sir Lucian and his team’s ability to deliver sustainable growth and continued value creation for all stakeholders.”