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’
EMI, the world’s third largest music company by revenue,
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