May 24, 2007 • 1 min read

Corvus confirm they are out of the EMI race

Corvus Capital has said it will not bid against Terra Firma for EMI, and the FT reports another consortium will not try to outbid it either.

Private equity types Corvus Capital Inc have said they will not bid against Terra Firma for EMI.

As previously reported, the EMI board have approved and recommended a 265p per share takeover offer by an private equity firm called Terra Firma, but other investment types and/or Warner Music had been expected to pitch rival offers to the major's shareholders.

However, Corvus, who had previously expressed an interest in bidding for the record company, have now said they will not be entering into a bidding war with Terra Firma. Meanwhile, the FT has reported sources as saying that another possible bidder - a consortium of Cerberus, Fortress and One Equity - is not planning on trying to outbid Terra Firma either.

Whether that means Terra Firma have the major in the bag remains to be seen. Warner Music are yet to confirm or deny that they plan to compete with the private equity bidders. More and more commentators are speculating that Warner might rather let Terra Firma win ownership, and then attempt to buy it off them at some point in the near future.

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