PARIS - Cyrille Bollore, CEO of Bollore, has publicly urged Universal Music Group to reject Bill Ackman's $64 billion takeover bid, arguing the proposal undervalues the label and lacks sound financial logic.
Speaking at Bollore's annual shareholder meeting, Cyrille Bollore stated the Bollore family sees no reason to support the Pershing Square offer. Vincent Bollore owns 18.4% of UMG and Vivendi holds 13.4%, enough to block the deal.
"We think the price is not there at all," Cyrille Bollore said. "He is not making an offer with his own money. It is our money, the company's money."
These remarks mark the first direct public comments from a key UMG shareholder on Ackman's unsolicited approach. UMG declined to comment, and a representative for Ackman was not immediately available.
Ackman had said in April that his first call before launching the bid was to the Bollore family, acknowledging that without their backing, "we don't have a transaction."
Cyrille Bollore also questioned the industrial logic of the proposal, noting the family was under no pressure to sell. He criticized Ackman's management style and expressed support for UMG's current expansion and acquisition strategy.
"I encourage the management of Universal Music to reject it," Cyrille Bollore said. "As far as I am concerned, it is as if it has been rejected."
Ackman's plan includes 9.4 billion euros in cash plus 0.77 shares of new stock for each UMG share, along with a shift of UMG's primary listing from Amsterdam to the United States. UMG said in April it would sell half its stake in Spotify, following Ackman's argument that the market was not fully valuing that holding.
($1 = 0.8587 euros)