Universal Music Group Shares Jump 10% After Pershing Square's Buyout Offer

Universal Music Group NV saw its shares leap more than 10% following an unsolicited bid from Bill Ackman's Pershing Square Holdings Ltd. The proposal lays out a complex merger plan aiming to relist UMG on the NYSE and offer shareholders a mix of cash and shares in a new combined entity.

The offer values UMG around €30.40 per share, consisting of €5.05 in cash plus 0.77 shares in the newly formed NYSE-listed company. This pricing represents a substantial 78% premium compared to UMG's recent closing price near €17.10.

Trading at about €18.95 on the announcement day, UMG's jump reflects market recognition of the deal's potential upside. The transaction envisions merging with Pershing Square SPARC Holdings, creating a