Failed continuation vote leaves Hipgnosis Songs manager in a 'do or die' position

Doubts over Blackstone acquisition

Hipgnosis Songs' (SONG) failed continuation vote may leave its investment manager in a “do or die” position, with the board's termination of the investment advisory agreement seen as the most likely outcome.

Shareholders voted against the continuation of the £2.4bn trust for another five years on Thursday (26 October), which meant the proposed $440m music catalogue sale to the Blackstone-backed Hipgnosis Songs Capital would not go ahead.  The decision, which was widely expected, concluded an uncertain period for the embattled trust, which has faced severe criticism over what was described as a "truly dreadful" portfolio sale deal and for axing its dividend. The result has been welcomed by shareholders, including Asset Value Investors and Metage Capital, which have launched public attacks ...