Universal Music Group, the entertainment giant behind acts such as Taylor Swift, Sabrina Carpenter and Kendrick Lamar, has rejected a takeover offer by billionaire Bill Ackman's investment firm.
The music giant said Pershing Square's $64.3bn (£48bn) takeover offer was "not in the best interests" of the company, shareholders, artists, fans and other stakeholders.
Universal said the offer "fundamentally and materially undervalues" the business, which also runs Abbey Road Studios and owns labels such as EMI and Island Records.
Pershing Square, which already owns a stake in Universal, declined to comment on the rejection.
The investment firm launched its takeover bid for the world's largest music company in April, a move which would have seen it listed as a new company in America. It is currently listed on the Euronext Amsterdam stock exchange.
At the time of the bid, Ackman promised to turn around Universal's share price, which he said had "languished" due to financial issues not related to the performance of its music business.
Ackman said one factor holding Universal back was an 18% stake in the company held by Bolloré Group, the family conglomerate of billionaire Vincent Bolloré, as well as a recent decision to delay listing the company's shares on the New York Stock Exchange.
Bollore's chief executive, Cyrille Bolloré, had opposed Ackman's offer, saying it undervalued Universal.
Universal's board said it had full confidence in the company's strategy under chief executive and chairman Sir Lucian Grainge.
And it promised "enhanced financial disclosures" in future so that the value of the company can be "better assessed and understood".
Grainge said the company remained committed to leading the global music industry by innovating, continuing to sign top stars, and deepening engagement with fans.
"As we execute our strategy and deliver maximum long-term value, we look forward to providing shareholders with greater insight into the drivers of our performance and future direction of our business," Grainge said.
Global music revenues have been growing year-on-year after streaming subscriptions provided a lifeline to the industry undermined by piracy and financial decline.
But there has been a heated debate over how much the platforms pay out in royalties.
The industry is also battling a rise in deepfakes - songs by fraudsters impersonating its artists - which are created by AI and are flooding platforms.
