Terra Firma-EMI Deal Done; 90.3% Of EMI Shares Accept Offer
August 1, 2007 at 7:52 AM (PT)
TERRA FIRMA CAPITAL PARTNERS LTD.'s 2.4 billion-pound ($4.9 billion) offer for EMI GROUP was accepted by 90.3% of EMI shareholders, ensuring the firm can get financing to buy the record label, reports BLOMBERG. TERRA FIRMA, the LONDON-based buyout firm run by financier GUY HANDS, received ``valid acceptances'' of the offer from the holders of 732.16 million EMI shares, according to a TERRA FIRMA statement distributed by the Regulatory News Service. The firm needed 90% support to secure financing from CITIGROUP INC.
HANDS prevailed after more than two months in which EMI investors held out for higher bids and credit-market turmoil threatened to derail financing. WARNER MUSIC GROUP and former EMI executive JIM FIFIELD, after considering making offers, decided last month not to bid.
The acquisition marks an end to seven years of attempts by EMI and WARNER MUSIC to buy each other.
WARNER Chairman EDGAR BRONFMAN JR. may still get his wish to acquire EMI's recorded music unit, according to LAURA MARTIN, an analyst at SOLEIL SECURITIES in PASADENA, CA. She said in a report last month that TERRA FIRMA may sell EMI's recorded-music business to WARNER. That would leave TERRA FIRMA with the music-publishing business of EMI.