Over A Quarter Of EMI Shareholders Accept Terra Firma Offer
July 20, 2007 at 5:44 AM (PT)
Private equity company TERRA FIRMA said on FRIDAY (7/20) over a quarter of EMI GROUP PLC's shareholders had accepted its 2.4 billion pound ($4.9 billion) takeover offer, days after two potential rivals bidders withdrew (NET NEWS 7/19).
TERRA FIRMA said in a statement 26.19% of EMI's shareholders had accepted its 265 pence per share deal, up from 3.82% on JULY 13. In the interim, two possible counterbidders, WARNER MUSIC GROUP and former EMI CEO JIM FIFIELD, said they had withdrawn from the battle.
That led EMI on WEDNESDAY (NET NEWS 7/18) to urge its shareholders, who had been waiting to see if a higher counterbid would emerge, to sell to TERRA FIRMA.
A WARNER bid would likely have faced regulatory hurdles as a similar music deal is being examined by the EUROPEAN COMMISSION, and analysts had said WARNER would need to pay around 300 pence for EMI at a time when music revenues are falling.
TERRA FIRMA got EMI's board to agree to its offer in MAY largely based on the fact it would face no real regulatory resistance. TERRA FIRMA said on FRIDAY it had extended until JULY 29 the period for other EMI shareholders to accept its offer.