4 hours ago

Archie Mitchell Business reporter

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Taylor Swift is one of the music artists signed to Universal Music Group

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.

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.…