Warner May Offer Extra $197 Million For EMI

EMI is entertaining offers for a take-over, with private equity showing an interest. However, Warner is still keen and willing to pay a 100 million pound (US$197 million) premium to keep it out of private equity hands, according to Reuters. Although being bought by Warner offers certain synergies a private equity take-over would raise fewer hackles from competition regulations. “The Sunday Times said the move by Warner Music to offer an extra 100 million pounds as a sweetener reflected Chairman Edgar Bronfman’s confidence that a merger with EMI will now be approved by competition regulators,” writes Reuters. Added to the 2.1 billion pound ($4.2 billion) offer which was rejected by EMI, the rumored Warner bid would be 2.2 billion pounds (US$4.33 billion)

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