EMI Shareholders Controlling Just 3.6% Of Stock Accept Offer
July 5, 2007 at 5:26 AM (PT)
TERRA FIRMA CAPITAL PARTNERS LTD.'s 2.4 billion-pound ($4.8 billion) offer for EMI GROUP PLC was accepted by shareholders with just 3.6% of the stock, indicating investors are holding out for a higher bid, reports BLOOMBERG.
The offer has been extended for a second time, until 1p U.K. time on JULY 12, LONDON-based TERRA FIRMA, GUY HANDS' buyout firm, said today in a statement. TERRA FIRMA bid 265 pence a share in cash for the record label on MAY 21.
EMI, which reported a 288.5 million-pound full-year loss in MAY, said it recommended TERRA FIRMA's offer because it delivers "cash now, without regulatory uncertainty." Shareholders may be waiting for a counter bid from WARNER MUSIC GROUP, which said last month that it was "actively" considering making a new offer to buy the world's third-largest music company.
"They are not making any progress getting people to accept,'' ALEX DEGROOTE, an analyst at PANMURE GORDON, said today in an interview. "If you were a shareholder you would possibly be sitting on your shares until the last possible moment in case WARNER comes up with a higher bid. WARNER vaguely suggested they were considering a bid, but it's gone a bit quiet in the last two or three weeks. It's a very elaborate game of poker. It's hard to call."