Pershing Square's (PS) proposed takeover plan for Universal Music Group should be rejected, Bollore Group, which owns a roughly 18% stake in the music company, said Wednesday.

"We think the price is not right at all," Bollore CEO Cyrille Bollore told the company's annual shareholder meeting, saying the offer undervalues the company and raises concerns over leverage and control.

Bollore said UMG is a high-quality, defensive asset with strong long-term growth potential, and suggested it could consider partial stake sales in the future at higher valuations, but not at current levels.

Bollore also criticized the deal structure, saying it would rely heavily on debt financing and could result in a loss of strategic control, with governance concerns if Pershing Square were to gain influence over the board.

Pershing Square and University Music Group did not immediately respond to requests for comment from MT Newswires.