Bidding For Warner Music Group At $3 Billion
May 2, 2011 at 3:23 AM (PT)
The bidding for WARNER MUSIC is approaching "more than $3 billion, with two or more bids expected on MONDAY (5/2) for the whole company," reports THE FINANCIAL TIMES. The report says, "Several people familiar with the three-month auction said LEN BLAVATNIK's ACCESS INDUSTRIES was competing with a consortium bid by PLATINUM EQUITY, the mergers and acquisitions group run by TOM GORES, and the GORES GROUP, a private equity firm run by his brother, ALEC."
GOLDMAN SACHS, the bank chose to handle the sale, was given paperwork FRIDAY (4/29), that both bidders had lined up the necessary financing to buy WMG. UBS, CREDIT SUISSE and JEFFERIES were the banks mentioned in the report.
Just last week (NET NEWS 4/19), D.M.I., or DIGITAL MUSIC INDUSTRIES, a consortium led by BERNHARD FRITSCH, a GERMAN-born technology entrepreneur, reportedly made an offer for WMG, according to a person involved in the private negotiations who spoke on the condition of anonymity.
The leading bidder has been fluid, with YUCAIPA COMPANIES named the front-runner for WARNER MUSIC GROUP just two weeks ago (NET NEWS 4/18), with an offer reportedly at $3 billion, $200 million more than a bid submitted by BMG. Now, BLOOMBERG is reporting that, "Billionaire investor RON BURKLE [who owns YUCAIPA] has dropped out of the WARNER MUSIC GROUP auction, leaving two final bidders, said two people with knowledge of the decision."