Shares of Universal Music Group (UMG) rose sharply in early trading on Tuesday.
With the recent price jump of 11.45 percent to 18.99 euros in EURONEXT trading, Universal Music responded to the takeover offer from the investment company Pershing Square. This offers around 56 billion euros for the music company. Shortly after the start of trading, it even went up by 20 percent. However, the stock had almost halved since July.
The offer includes a combination of cash components and new UMG shares. Overall, this would result in a valuation of around 30.40 euros per share. The current price of UMG is just under 19 euros. Based on the listing on April 2nd, the offer represents a premium of 78 percent.
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