Bill Ackman’s Pershing Square has been forced to restructure a $ 4 billion deal to buy a 10 percent stake in Universal Music, the company behind artists like Taylor Swift, after U.S. regulators opposed the original form of the agreement.
Pershing had agreed last month to buy the stake from Vivendi, the owner of Universal, through a special-purpose acquisition company called Pershing Square Tontine Holdings. But in a statement On Monday Ackman’s company said the Securities and Exchange Commission had found problems with the transaction.
“Our decision to seek an initial business combination (IBC) was guided by issues raised by the SEC with several elements of the proposed transaction – in particular, whether the structure of our IBC is qualified under the rules. of NYSE, ”Pershing said Monday.
He added: “However, despite PSTH’s inability to complete the UMG transaction, our counterparty was not left at the altar. Pershing Square will realize PSTH’s commitment to Housing. ”
He said Pershing Square plans to be a long-term shareholder in Universal, which will be listed in Amsterdam.