Hedge-fund billionaire William Ackman's special purpose acquisition company (SPAC) is in talks with Vivendi
VIV,
-0.48%
to buy a 10% stake in Universal Music Group, the French media conglomerate said in a statement on Friday. Vivendi said it had entered discussions with Ackman's Pershing Square Tontine Holdings
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+0.56%
and that the potential deal would give Universal Music an enterprise value of €35 billion ($42.4 billion). The French company plans to distribute 60% of Universal Music's share capital and list the company in Amsterdam, subject to shareholder approval next month. The Wall Street Journal reported late Thursday that the two sides were nearing a deal, citing sources.