iWorld
TDSAT grants permission to RCom to sell spectrum
MUMBAI: Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has given permission to Reliance Communications (RCom) to proceed with the sale of its spectrum. The telecom company would have to assure bank guarantees worth Rs 2900 crore as demanded by Department of Telecommunications (DoT).
In its media release, the telecom company confirmed that it will be able to pay the Swedish multinational networking and telecommunications company Ericcsson its Rs 550 crore and the minority investors of Reliance Infratel (RITL) about Rs 230 crore, as agreed by the lenders.
The official release stated, “Reliance Communications Ltd has been granted relief by the Telecom Disputes Settlement & Appellate Tribunal vide its Interim Order dated 1 October 2018, whereby TDSAT has stayed the demand of Bank Guarantee of Rs 2,900 Crore by the Department of Telecommunications”.
“38 secured lenders of RCOM Group have already approved the sale of the above spectrum, and the proceeds thereof will be used for making payments to Ericsson India Private Ltd and to RITL Minority Investors, as per settlement terms,” continued the release.
RCom even criticised the DoT for creating obstructions in the proceedings of the spectrum sale.
iWorld
Bill Ackman’s Pershing Square makes $64 billion bid to acquire Universal Music Group
Ackman pitches NYSE relisting plan as UMG board weighs unsolicited offer
The hedge fund has proposed a business combination that values UMG at €30.40 per share, representing a hefty 78 per cent premium to its current trading price. The offer includes €9.4 billion in cash alongside stock in a newly formed entity, with shareholders set to receive €5.05 per share in cash and 0.77 shares in the new company for each UMG share they hold.
Under the proposal, UMG would merge with Pershing Square SPARC Holdings Ltd and re-emerge as a Nevada-based entity listed on the New York Stock Exchange. The move is designed to boost investor visibility and potentially secure inclusion in major indices such as the S&P 500.
Pershing Square Capital Management ceo Bill Ackman argued that while UMG’s operational performance remains strong, its market valuation has lagged due to external factors. “UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business,” Ackman said, pointing to concerns ranging from shareholder overhang to delayed US listing plans.
Ackman also flagged what he sees as untapped potential in UMG’s balance sheet and a lack of clear capital allocation strategy. He added that the market has not fully recognised the value of UMG’s €2.7 billion stake in Spotify, alongside gaps in investor communication.
The proposed transaction would also result in the cancellation of around 17 per cent of UMG’s outstanding shares, while maintaining its investment-grade balance sheet. Pershing Square has said it will fully backstop the equity financing, with debt commitments secured at signing. The deal is targeted for completion by the end of the year.
UMG, however, has struck a measured tone. The company confirmed that its board has received the non-binding proposal and will review it with advisers. It reiterated confidence in its current strategy and leadership under Lucian Grainge, signalling no immediate shift in stance.
The proposal comes at a time when global music companies are navigating evolving investor expectations, streaming economics and capital allocation pressures. For Pershing Square, the bet is clear: sharpen the financial story, relist in the US, and let the music play louder in the markets.
Whether UMG’s board is ready to change the tune remains to be seen, but the spotlight on its valuation just got a lot brighter.
