AMSTERDAM, Netherlands: Universal Music Group has rejected an unsolicited takeover proposal from billionaire investor Bill Ackman's Pershing Square Capital Management, saying the offer significantly undervalued the company and was not in the best interests of shareholders, artists or the business.

The board of Universal Music Group said on May 29 that it had unanimously decided to reject the proposal after reviewing it in detail.

In a statement, the company said the offer "materially undervalues" Universal Music and would not support its future growth plans. Universal's largest individual shareholder, Bollore, had also urged the board to reject the bid.

Pershing Square declined to comment on the board's decision.

According to Reuters calculations, Pershing Square proposed a cash-and-stock offer in April through its acquisition vehicle that valued Universal Music at approximately €30.40 per share, putting the overall deal value at about €55.75 billion ($65.03 billion).

Ackman has argued that Universal's stock market valuation does not fully reflect the strength of the music business, despite continued growth across the industry.

Universal Music, home to artists including Taylor Swift, Billie Eilish and Kendrick Lamar, has recently taken several steps aimed at boosting shareholder value. The company launched a share buyback programme, announced plans to sell half of its stake in Spotify, and pledged to improve financial disclosures to give investors a clearer view of its operations.

The company is also expected to move its primary stock market listing from Amsterdam to New York, a move that could attract a broader group of investors, including index funds, and potentially support a higher valuation.

Ackman's interest in Universal Music dates back several years. In 2021, he attempted to acquire the company through a special purpose acquisition company, or SPAC, structure designed to take a private company public. That effort was abandoned following scrutiny from U.S. regulators.

Pershing Square later became a major investor in Universal Music, and Ackman served on the company's board until last year.

"UMG has built an unrivaled position in the music industry through clear vision and strong execution," said Sherry Lansing, chairman of Universal Music Group's board. "The Board has full confidence in Sir Lucian and his team's ability to deliver sustainable growth and continued value creation for all stakeholders," Lansing added.