Bill Ackman’s Pershing Square to restructure its arrangement with Universal Music Company, after objections from SEC, according to Monday report by Pershing Square.

  • The SEC raised concerns over whether the deal is IBC qualified under the NYSE rules. SEC’s position undermined the possibility of PSTH and UMG reaching an agreement.
  • Pershing Square has 18 months remaining to finalize a new transaction unless the shareholders vote for a new extension. In future, PSTH will use conventional SPAC merger as a method for business combination.
  • The management team underestimated the market reactions of PSTH’s shareholders as the announcement of the deal on June 4th led to 18% in the firm’s share price.

Pershing Square had planned to become a long-term shareholder in Universal Music while acknowledging the short-term intricacies of the transaction structure.

PSTH down 1.81%.