EMI Shoots Down Warner Music’s Takeover Bid
EMI rejected a £2.1 billion / $4.1 billion cash takeover proposal from Warner Music Group minutes ago, stating the price was not enough and not in the best interests of its shareholders.
“The board concluded that it is not in the best interests of EMI shareholders to entertain a pre-conditional offer which would entail prolonged regulatory uncertainty and unacceptable operational risk at a critical time for the company,” EMI said in a statement. “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.”
Warner, the world’s fourth-largest music company and with artists including Madonna and the Red Hot Chili Peppers, approached EMI about a possible bid at the end of January despite uncertainty over whether it would win European regulatory approval. The world’s third-largest music company and home to Robbie Williams and Coldplay, said it held a board meeting Friday after getting a non-binding proposal from Warner, and has decided against it.
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