Ackman's Pershing seeks to exit Universal Music Group stake, Bloomberg News reports

June 3 (Reuters) - Bill Ackman's Pershing Square is looking to sell its stake in Universal Music Group, Bloomberg News reported on Wednesday, days after the music industry giant rebuffed the billionaire investor's takeover proposal.

Pershing will sell roughly 80.6 million shares in an overnight placing, Bloomberg reported, referencing a statement on Wednesday. Bank of America is marketing the shares in a range of €17.66 ($20.48) to €18.62 apiece, the report said, citing terms seen by Bloomberg.

Pershing projects earning at least $600 million in profits, including dividends, from its nearly five-year investment in UMG, the Wall Street Journal reported separately.

Universal Music did not immediately respond to a Reuters request for comment and Pershing declined to comment.

Pershing had proposed a cash-and-stock offer for Universal Music Group in April, with the deal valued at about €55.75 billion, according to Reuters calculations.

However, Universal Music Group — the company behind wildly popular artists including Taylor Swift, Billie Eilish and Kendrick Lamar — rejected the offer last week, saying it "materially undervalued" the company and was not in the best interests of shareholders, artists or the firm.

Pershing has a 4.7% stake in Universal Music Group — or about $1.64 billion — making it the company's fourth-biggest shareholder, according to LSEG data.

Ackman had said there would be no deal without the backing of the Bollore family. French billionaire Vincent Bollore owns 18.4% of UMG, making him the biggest shareholder.

His holding group had urged the UMG board to reject Ackman's offer, saying it undervalued the label, relied on the company's own cash and did not align with its long-term strategy.

Ackman had previously pursued Universal Music Group in 2021 in a deal through a shell corporation designed to take a private company public, but dropped it following U.S. regulatory scrutiny.

Pershing Square instead became a major UMG investor, and Ackman served on its board until last year.

($1 = 0.8624 euros)

(Reporting by Deborah Sophia in Bengaluru and Juby Babu in Mexico City; Editing by Pooja Desai)