EMI Rejects Warner Music Buyout
Warner Music Group officially confirmed its attempt to buyout EMI yesterday. Just one day earlier, Warner had floated an acquisition offer of 320 pence per share, or $4.6 billion (Â£2.54 billion) at current share valuations and exchange rates. “The WMG board agrees with EMI that there are potential merits in combining the businesses of WMG and EMI, but believes that a WMG acquisition of EMI will provide shareholders of both companies with a superior opportunity to realize significant value in their shareholdings,” a statement read.
Warner also confirmed that it had rejected a recent acquisition attempt by EMI for $31 per share, which trumps an earlier bid for $28.50, of $4.23 billion. In its statement, EMI confirmed the attempt, part of an ongoing takeover dance that they two majors have been engaging in for quite some time. Each company obviously wants to keep their management intact and in control of a merged company.