Report: EMI May Make New Warner Music Offer This Week
May 16, 2006 at 4:13 PM (PT)
EMI is expected to launch a revised offer of $30 a share for WARNER MUSIC, reports THE OBSERVER. While WARNER's board and its private equity backers reportedly turned down EMI's offer of $28.50 per share last week, THE OBSERVER reports that analysts are unsure whether or not the company' board would accept this latest offer, as some bankers feel WARNER could hold for as much as $33 per share.
For EMI's part, its investors are said to be nervous the company may overpay for WARNER MUSIC, and are concerned that a gap has opened up between the two sides about the level of cost savings that might result with a merger.
THE OBSERVER reported that EMI is understood to be banking on at least $200 million of savings, but the WARNER side says the figure could be double that.