EMI Group PLC has accepted an offer of £2.4 billion (GBP) or $4.7 billion (USD) from private equity group, Terra Firma Capital Partners. The label accepted the 265 pence ($5.23) per share takeover bid on Monday but the deal has raised speculation of an upcoming bidding war for the music company. Analysts have said that the offer could flush out a higher offer from Warner Music.
Shares of EMI finished 8.5 percent higher at 269 pence ($5.30) after the offer was made just before the closing bell on the London Stock Exchange. "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.
He added: "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." EMI reported a net loss of 288.5 million pounds in its most recent earnings release, following a profit of 86.1 million pounds in 2006. EMI is home to artists such as the Beatles and Coldplay.
Source:
MSNBC
He added: "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." EMI reported a net loss of 288.5 million pounds in its most recent earnings release, following a profit of 86.1 million pounds in 2006. EMI is home to artists such as the Beatles and Coldplay.
Source:
MSNBC
