Private equity group Terra Firma has extended its takeover offer for EMI after revealing that the recommended deal has been accepted by shareholders who own just 3.56 per cent of the music company's total stock.
The finance firm said that EMI shareholders would now have until July 12th to accept the £2.4 billon cash offer, with investors apparently holding out in the hope that a higher counter bid will be made for the recording firm.
"EMI shareholders who have not yet accepted the offer are urged to do so as soon as possible and in any event by July 12th 2007," said Terra Firma in a statement issued by Maltby Limited, the company's takeover vehicle.
Terra Firma, run by financier Guy Hands, has offered EMI shareholders 265 pence a share for their stock but some investors are hoping that Warner Music will come up with a higher bid.
EMI's long-term suitor has said that it is still considering whether to make a rival offer after its £2.1 billion bid for the music firm was rejected in March.
However any takeover deal between the New York-based company and EMI would be likely to come under scrutiny from European competition regulators a concern that has previously prevented a tie-up between the two music groups in the past.
Announcing it's own renewed efforts to win over EMI shareholders, Terra Firma revealed today that it had still not received acceptance of its offer from the Allianz insurance group, which holds 96,600 shares in the takeover target.