Universal Music slumps 7%; European stocks rise

European stocks moved higher early Thursday as tensions escalated between Washington and Tehran, even as a ceasefire was agreed between Israel and Lebanon on Wednesday evening.

Shortly after the opening bell, the pan-European Stoxx 600 was seen trading up 0.4%. London’s FTSE 100 rose 0.2%, while France’s CAC 40 added 0.7% and Germany’s DAX added 0.6% in morning trade.

In corporate news, shares in Universal Music Group were seen down 6% following reports that Pershing Square had sold its stake in the group, after two failed takeover attempts.

UMG announced Thursday morning that it had repurchased over 14 million of its ordinary shares owned by various Pershing Square funds, worth 250 million euros ($289.9 million), as part of an existing 500 million euro buyback program.

The Wall Street Journal reported that Bill Ackman’s hedge fund had sold its UMG stake worth over $1.5 billion at an estimated profit of $600 million.

Shares in French conglomerate Bollore were also seen down 1.6%. The Bollore family, which owns a stake in UMG, last week urged the label to reject Pershing’s takeover offer on the basis that it undervalued the company.

Nokia shares fell 7.7% early Thursday as tech stocks unwound across the globe, following several consecutive days of remarkable gains for the sector.

Meanwhile, tensions between Iran and the U.S. on Wednesday sent Asian stocks lower overnight, and European equity markets look set to follow suit.

The Kuwait International Airport was struck by Iran early Wednesday, just a day after the U.S. Central Command said it had defeated multiple Iranian ballistic missiles and drones, as well as launching “self-defense strikes” on Qeshm Island in the Persian Gulf. This was in response to “attempted attacks” by Tehran, it said.

If necessary, Israel and the U.S. are prepared to strike Iran again, Israeli Prime Minister Benjamin Netanyahu told CNBC in an interview.