|
Warners ups the Ante
• Rival ponders higher offer for EMI
 Images |
|
|
 Related Articles |
|
|
 On the Web |
|
|
By
The Minx, Show biz editor
Monday,
11 June, 2007
Warner Music is still considering its position on EMI and is more likely than not to make an improved offer by early next week, sources familiar with the situation told Reuters on Monday.
EMI said on May 21 it had agreed to a 2.4 billion pounds cash takeover from private equity group Terra Firma but the industry has been waiting to see whether long-term suitor Warner would return with an improved offer.
The two groups have been engaged in a seven-year bid battle.
"It is currently more likely than not," said one of the sources who asked not to be named. The other source said Warner would make a decision either this week or early next week.
Private equity bidder Terra Firma's offer is worth 265 pence per EMI share but analysts have said Warner would have to offer nearer to 300 pence as any deal between the two groups would likely be reviewed by European regulators and therefore incur risk.
EMI is the world's third largest music company with artists such as Kylie Minogue and Robbie Williams while Warner is the fourth largest group with artists including Madonna and Red Hot Chili Peppers.
Alternatively, Warner could allow Terra Firma to buy EMI and then make an offer to the private equity group for EMI's recording unit at a later date. The Terra Firma-EMI proposal includes a 24 million pound break clause.
Terra Firma has sent its offer document to EMI and has said acceptances should be received by June 27.
Reuters
Read earlier stories for background
| 
