Defiant EMI rejects Warner approaches


British music label EMI has rejected a £2.5 billion takeover offer by its US rival, Warner Music.

A statement released today by EMI said that it received a 315 pence per share offer on June 14th from Warner which it rejected.

It then counterattacked with its own proposal to Warner Music, raising an offer which had been made before the June 14th bid to 31 cents per share in cash, which was subsequently turned down.

Now Warner have upped the bidding once again with a new offer, worth 320 pence per share.

"The board of EMI has unanimously rejected the revised alternative proposal from Warner Music at 320 pence per share, and considers it to be wholly unacceptable, having regard to EMI's prospects, the potential synergy benefits of a combination of the two companies and the range of strategic options available to EMI," a statement released this morning said.

The bidding battle between the two music industry giants is likely to continue until one or other of the groups gives in. Their determination reflects the industry's promising future, with digital sales looking likely to offset the downturn in physical musical formats like CDs in the future.

EMI, whose artists include the Beatles, Coldplay and Robbie Williams, saw its share price rise by 7.75 per cent today to 305 pence per share.

Both EMI and Warner are members of the 'Big Four', a group of four companies controlling an oliogopoly over the global music industry.

They control 9.6 per cent and 15 per cent of the international market respectively but are overshadowed by the biggest fishes of all – Universal Music Group and Sony BMG Music Entertainment, which control 25 per cent and 31 per cent respectively.

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
HR / Recruitment
Health / Beauty
Hotel / Catering / Restaurants
IT / Internet
Insurance / Pensions
International / Overseas
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Transport / Logistics
Travel / Tourism / Leisure