EMI, WARNER MUSIC IN TAKEOVER TALKS Associated Press/LONDON
JUN. 28 4:48 A.M. ET EMI Group PLC and Warner Music Group Corp. are again discussing a merger, but each has rejected a takeover bid from the other, EMI said Wednesday.
Warner Music on Tuesday tabled a cash offer of 320 pence per share for EMI, which was rejected, EMI said. That bid valued EMI at 2.5 billion pounds (euro3.6 billion; US$4.6 billion).
The offer came four days after EMI bid US$31 per share to acquire Warner Music, EMI said. That offer valued Warner at US$4.2 billion (euro3.3 billion).
"Since EMI's approach, announced on May 3, to acquire Warner Music, EMI has been continuing actively to explore the potential acquisition of Warner Music, including in discussions with Warner Music and certain of its shareholders," EMI said. "The board of EMI continues to believe that an acquisition of Warner Music by EMI at US$31 per share in cash would be very attractive to both sets of shareholders and would deliver value to EMI's shareholders which is far superior to Warner Music's revised alternative proposal," EMI said.
EMI and Warner attempted to merge in 2000 but the combination was vetoed by European authorities. The companies saw a merger as a way to improve competition with Paris-based Universal Music Group and Sony BMG Music Entertainment, the joint venture of Sony Corp. and Bertelsmann AG.
A combination of EMI and Warner Music, which boasts artists including Madonna and Green Day, would control about 25 percent of the recorded music market, surpassing BMG in the rankings and moving into second place behind Universal, according to the International Federation of the Phonographic Industry.
EMI shares were up 9 percent at 308 pence (euro4.46 US$5.62) in early trading on the London Stock Exchange. |