WARNER MUSIC CONSIDERING FRESH TAKEOVER BID FOR EMI FMQB After EMI rejected a $4.1 billion takeover bid from Warner Music Group earlier this month, WMG is reportedly ready to sweeten the deal. Warner chief Edgar Bronfman Jr. will soon meet with EMI chairman John Gildersleeve to discuss a fresh proposal, however, Bronfman wants an assurance from EMI that they will be prepared to consider a revised deal before he ups the ante, according to the U.K.'s Observer.
An industry executive told The Observer, "This is a marriage that is going to happen at some point; they have talked so often in the past." And some EMI shareholders are believed to be unhappy that the company has failed to leave the door open to negotiations with Warner, especially in light of EMI's recent profit warnings.
EMI's Board rejected WMG's most recent offer because they felt it was not in the best interests of the shareholders to entertain an offer which would entail prolonged regulatory scrutiny (ala the Sony BMG merger) and unacceptable operational risk at a critical time for the company. "The Board also regards a price of 260 pence per share as inadequate, having regard to the stand-alone value of EMI, the synergies available from a combination with WMG and the risks identified above," EMI said in a statement. |