UMG: share price falls on investment rumors

(CercleFinance.com) - UMG shares were down over 8% late on Friday morning on rumors that the American investment fund Pershing Square was preparing to place shares on the market.


This morning, according to information from Bloomberg, relayed by analysts at Panmure Liberum, several Pershing Square subsidiaries are about to sell some 2.7% of the music label's capital in a transaction estimated at E1.3bn.

In detail, the operation is expected to involve 50 million Universal shares offered at E26.60 each, i.e. a discount of around 5% from yesterday's closing price in Amsterdam (E27.90).

Following the operation, UMG should still remain Pershing's largest holding, with around 17% of the portfolio, Panmure Liberum says.

Although UMG's share price has risen by only 11.1% since its IPO in September 2021, it has contributed to Pershing Square's performance, with its sterling-denominated share price up 34.5% over the same period.

Bill Ackman, founder of Pershing Square, already seems to have ambitious plans for the funds raised

We look forward to announcements regarding the use of these funds and future investments, Panmure Liberum adds.


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