Permira’s Buyout Negotiations For EMI Crumble
Shares Take A Beatin’ On The Street
EMI has recently ceased negotiations with Permira Advisors Ltd, according to a recent press release. “EMI today announces that discussions with the potential offeror have now ceased,” the label stated. “The EMI Board has not received an offer that fully reflects the prospects for and value of the company and which it could recommend to shareholders,” the company continued. The suitor was widely believed to be private equity firm Permira Advisors Ltd. In reaction to the announcement, shares dipped 10 percent on the London Stock Exchange.
EMI then announced that it would repurchase a stake in its Japanese operation. The Japanese unit is a joint venture with Toshiba, which owns a 45 percent stake in the property. According to EMI, the buyout amount is 21,000 Yen, which translates into Â£90.9 million and $178.2 million under current exchange rates.
Read the entire EMI Buyout Announcement.