Ackman has suggested that Universal Music Group (UMG) should delist from Amsterdam’s Euronext stock exchange following a clash between protesters and Israelis in the city. He has initiated discussions with UMG about relocating the company’s domicile and listing to the United States. However, UMG clarified that while Ackman’s company, Pershing Square Holdings (PSH), has the right to request a US listing, it cannot compel UMG to change its domicile or delist from Euronext Amsterdam.
UMG stated that it will work in good faith to fulfill its contractual obligations regarding the US listing at Pershing’s request. Any further actions will be taken after considering the best interests of the shareholders. PSH would need to sell at least $500 million worth of UMG shares to request a US listing.
PSH acquired a 10% stake in UMG through various transactions in 2021. UMG’s shares have fluctuated in value, with recent concerns about revenue growth in the streaming sector. PSH remains optimistic about UMG’s long-term growth prospects despite short-term challenges. Ackman also proposed delisting PSH from the Amsterdam exchange due to the majority of its trading volume being on the London Stock Exchange. Please rewrite this sentence for me.
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