EMI Buyer Reports 85% Shareholder Support
July 30, 2007 at 5:45 AM (PT)
Private equity firm TERRA FIRMA said on SATURDAY that owners of about 85% of EMI GROUP's shares had accepted its takeover bid, and it extended a deadline to receive the rest by a few days until AUGUST 1.
TERRA FIRMA, which is offering 265 pence a share to buy the BRITISH music company for 2.4 billion pounds ($4.88 billion), had a SUNDAY deadline to receive 90% of the shares as a condition tied to its financing agreement for the deal with adviser CITIGROUP.
EMI shares had slipped further from the offer price over the last few days as investors worried the takeover might collapse because of deterioration in credit markets. TERRA FIRMA, led by financier GUY HANDS, agreed to buy EMI on MAY 21, but the company's investors were slow to sell the shares, waiting instead to see whether WARNER MUSIC GROUP would mount a rival bid.