Report: Leading Warner Shareholders Oppose EMI Bid
June 11, 2007 at 9:55 AM (PT)
Leading shareholders in WARNER MUSIC GROUP are said to be opposed to CEO EDGAR BRONFMAN's plans to make a renewed offer for EMI, THE SUNDAY TIMES of LONDON reports.
According to sources, BAIN CAPITAL and THOMAS H LEE are unwilling to back WARNER in making a higher bid than the 2.4 billion-pound deal on the table from TERRA FIRMA, the investment firm headed by GUY HANDS, the report said.
BAIN and THOMAS H LEE are thought to believe WARNER will need to offer more than 300 pence a share to persuade shareholders to switch from TERRA FIRMA, the newspaper said.
Although HANDS is offering only 265p, he does not face the same concerns that would inevitably delay, and threaten, a WARNER-EMI merger, it added.
Warner Keeps The Door Open
Meanwhile, WMG apparently is keeping it's options open, and released this statement today:
WARNER MUSIC GROUP confirms that it continues actively to consider an offer for EMI GROUP. Such an offer would be pre-conditional on appropriate anti-trust clearances being obtained (or the pre-conditions waived) but not subject to any other pre-condition. A further announcement will be made in due course.
This announcement does not amount to a firm intention to make an offer or pre-conditional offer and accordingly there can be no certainty that any offer or pre-conditional offer will be made.