EMI And WMG Likely To Raise Counteroffers For Each Other
July 5, 2006 at 11:24 AM (PT)
In the continuing dance to see who finally gets to take the other home, it looks like EMI is considering whether to raise its bid for WARNER MUSIC GROUP to $33 a share from $31 a share. Word is that WMG is mulling over a similar offer to buy EMI at $33 a share.
Interestingly enough, HUGH HENDRY, chief investment officer of hedge fund investor ECLECTICA, which has stakes in both EMI and WMG, has written an open letter to the FINANCIAL TIMES taking the stance that WMG CEO EDGAR BRONFMAN, JR. would be the best man to lead a potential merged EMI and WMG. HENDRY cites BRONFMAN's "strong record of creating shareholder value" as well as concern that EMI would probably try to finance much of its takeover with equity as his two main reasons for supporting WMG's bid. For more, click here.