Forbes: Warner Appealing Directly To EMI Shareholders
April 9, 2007 at 5:46 AM (PT)
FORBES reports that WARNER MUSIC is considering pursuing a merger with EMI GROUP by making a direct appeal to its rival's shareholders in an attempt to undermine the opposition of EMI's management.
The EMI board last month rejected what it described as a 'pre-conditional offer' pitched at 260 pence a share. Any deal between the number three and number four recorded music companies would require clearance by EUROPEAN competition regulators.
WARNER remains keen to press ahead because it believes the EUROPEAN COMMISSION's review of the SONY-BMG merger provides an opportunity to reshape the global music industry, creating three strong majors and a vibrant independent sector, the article added.
WARNER sources reportedly told sources that the company's planning was given fresh urgency last week after EMI announced an initiative to scrap copyright protection on digital music.
Although the move was widely praised by technology and consumer commentators, WARNER is concerned that EMI could be making a grave mistake. Its management was astonished that EMI had made a decision with such potentially far-reaching consequences while it was a bid target.