Bill Ackman’s Pershing Square has been forced to restructure a $ 4 billion contract 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 deal.
Pershing agreed last month to buy a stake from Vivendi, the owner of Universal, through a special-purpose acquisition company called Pershing Square Tontine Holdings. But u statement on Monday, Ackman’s company said the Securities and Exchange Commission found problems with the transaction.
“Our decision to seek an alternative initial business combination (IBC) was driven by issues raised by the SEC with several elements of the proposed transaction – particularly whether the structure of our IBC qualified under NYSE rules,” Pershing said Monday.
He added: “However, despite the inability of PSTH to execute the UMG transaction, our other side was not left in front of the altar. Pershing Square will fulfill PSTH’s commitment to Vivendi. ”
It was said that Pershing Square planned to be a long-term shareholder of Universal, which should be announced in Amsterdam.