May 3, 2006
Warner Music rejects EMI takeover approach
LONDON (Reuters) - Warner Music Group Corp., home to
Madonna and James Blunt, has rejected a $28.50-a-share takeover
approach from rival EMI Group that valued the world's fourth
largest music company at $4.2 billion.
The bid from London-based EMI, home to Coldplay and Robbie
Williams, offered cash and shares, and EMI, which revealed the
approach on Wednesday, said it still believes that buying
Warner Music would be a good deal for both companies'
and Warner Music, tried to merge twice in the past five years.
But that was before Edgar Bronfman Jr. and a group of private
equity firms bought Warner Music from media conglomerate Time
Warner Inc. They have since taken the company public.
EMI said it made the approach on May 1 and that on May 2
Warner Music told EMI it did not want to enter discussions
regarding the proposal.
The approach was tipped by Reuters and other news
organizations on Tuesday, with Reuters citing a source close to
EMI shares were down 2.8 percent to 274 pence at 0755 GMT.
Warner Music's shares closed up 1.1 percent to $27.29 on