Pershing Square's activist investment approach is challenging Universal Music Group's (UMG) presence on the Euronext Amsterdam, though the company maintains firm control over its listing status.

While Pershing Square holds a 10.25% stake in UMG, the music company clarifies that Pershing's rights are limited. They can request a U.S. listing only if they sell at least $500 million in UMG shares, but cannot force UMG to become U.S.-domiciled or delist from Amsterdam.

Bill Ackman, Pershing's CEO, argues that UMG's current listing status contributes to its undervaluation and limited liquidity. He plans to pursue a U.S. listing by next year, citing potential index inclusion and better market access as key benefits.

UMG acknowledges its contractual obligations regarding a possible U.S. listing but emphasizes that any additional changes must maximize value for all shareholders.

Pershing Square has a successful history of activist investing, notably forcing the Tim Hortons spinoff from Wendy's in 2004 through strategic pressure and detailed valuation analysis. However, UMG's situation presents unique challenges given the company's strong stance on maintaining control over its domicile decisions.

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