Bill Ackman had already done his homework before the proposal ever went public.”Speaking to investors on Tuesday (April 7) after announcing his non-binding bid to acquire Universal Music Group, Bill Ackman pulled back the curtain on just how much groundwork had already been laid before the proposal went public.
Ackman was direct about where the real leverage sits. “Without Bolloré, we don’t have a transaction,” he told investors. Bolloré Group controls 28% of UMG through a combination of a direct stake and its holding in Vivendi, and the deal requires a two-thirds shareholder vote to close. That math makes Bolloré’s support not just helpful but essential.
“My first phone call yesterday was to Bolloré, to just share with them a high-level summary of the transaction,” Ackman said. “And the words I got back were, ‘these are music to my ears.'” He described Bolloré as “intrigued” while cautioning that “the devil’s in the details.” The transaction would generate approximately €2.7 billion in incremental cash for Bolloré while allowing the French firm to retain its UMG stake, addressing what Ackman characterized as persistent market anxiety about whether Bolloré intended to sell its position and overhang the stock.
The Bolloré call was not the only relationship Ackman had already been cultivating. He and proposed board chairman Michael Ovitz had dinner with UMG Chairman and CEO Sir Lucian Grainge “a couple of weeks ago,” presenting the idea of a potential transaction in broad strokes. “Lucian encouraged us to send it in and said it’s something the company’s going to take a hard look at,” Ackman said, while adding he did not want to speak for Grainge or the existing board. UMG confirmed it had received the proposal and said the board would review it, offering no further comment.
Ackman’s tone toward Grainge throughout the call was notably warm, describing him as having “done an excellent job” and pledging there would be “no change to the way the business operates.” That framing is deliberate. This is not a hostile takeover. It is structured to look like an upgrade, with Grainge staying in his seat and Ovitz, described by Ackman as having a 40-year relationship with Grainge, coming in as Chairman.
