Wouldn’t it be nice to out-and-out declare an end to this saga? No such luck. Warner Music Group confirmed late Tuesday afternoon that it will not make an offer for EMI, then tacked on legalese reminding us that it reserves the right to make an offer or possible offer within the next six months if a third party other than those currently involved makes an offer. Terra Firma Capital Partners’ $4.9 billion offer was accepted by the board in May; it has obtained less than 4 percent shareholder acceptances and has extended its bid until July 19. WMG’s stock went up on the news. Shareholders waiting for Warner to bid up the price may be more accepting now. Warner offered $4.2 billion in March and would have had to go past $5 billion now to win.
Reuters: Too expensive. “The multiples on the business have doubled while the business has declined,” a source familiar with the talks told the wire service.
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