EMI Sale Enters Second Round Of Bidding
August 31, 2011 at 5:15 AM (PT)
The second round of bids for EMI GROUP LTD. are due next week, the WALL STREET JOURNAL reports. CITIGROUP INC. received first-round preliminary bids from around 10 potential buyers, both trade and financial, in JUNE. Several buyers are expected to submit bids for the whole or parts of the music group.
Among those kicking EMI's tires include the other major label groups (VIVENDI's UMG, ACCESS INDUSTRIES' WMG, SONY), as well as BERTELSMANN AG and CPP INVESTMENT BOARD.
BMG: EMI 'Fits Acquisition Strategy'
In JULY, ALL ACCESS reported that KKR-backed music publishing venture BMG RIGHTS had submitted a bid for EMI (NET NEWS 7/26). Now, BUSINESSWEEK.COM adds, "BERTELSMANN AG Chief Financial Officer THOMAS RABE said EMI GROUP LTD. would fit with the acquisition strategy of its BMG RIGHTS MANAGEMENT, the music company that the GERMAN media company runs with KKR & CO."
Would BERTELSMANN consider joining with a third party to bid for EMI? RABE said that "the company has more flexibility in financing acquisitions because it is closely held. He declined to comment further on the EMI sales process, adding that EUROPE's largest media company is as 'prudent' as before and that its spending policy hasn’t changed amid the turmoil in capital markets."