Update: 28 May 2007 Latest reports suggest that Terra Firma, the private equity group poised to snap up EMI, in primarily interested in the group's lucrative music publishing rights. The recording side of EMI's business may yet be sold to rival bidder Warner Music Group. (ends)
May 21 2007 : Music group EMI Group PLC, home to the Beatles and Coldplay, announced on Monday it had agreed to a 2.4 billion pound (US$4.7 billion; €3.5 billion) takeover by private equity group Terra Firma Capital Partners Ltd.
EMI, which earlier this year rejected a 2.1 billion pound proposal from Warner Music Group, said that Terra Firma's offer was the best among a number of proposals it received.
"The global music industry is undergoing significant change and, whilst EMI is confident in its ability to deliver its recently announced restructuring plans, significant uncertainty exists as to the timing and extent of future market developments," said EMI Chairman John Gildersleeve.
"Terra Firma's offer is the most attractive proposal received and delivers cash now, without regulatory uncertainty and with the minimum of operational risk to the company," he added.
EMI's shares soared on the news, which was made just before the closing bell on the London Stock Exchange. The stock finished 8.5 percent higher at 269 pence (US$5.30; €3.94).
Terra Firma is the European private equity group founded in 2002 by Guy Hands, as the independent successor to the Private Finance Group of the Japanese Nomura bank. Other UK assets include the Odeon cinema chain.
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