The chances of private equity outfit Terra Firma acquiring London based major EMI increased yesterday after another potential counter-bidder bowed out of the race.
As much previously reported, Terra Firma received approval from the EMI board for their takeover proposal back in May, but have been struggling to get commitment from many of the major's large institutional shareholders to sell at their 265p per share offer. The consensus was that those shareholders were waiting to see if two potential counterbids - from Warner Music and a consortium led by former EMI chief Jim Fifield - would be launched, on the basis that those counterbids would force up the asking price.
After Terra Firma extended the deadline on their offer for a second time the UK Takeovers Board, a non-statutory body that monitors mergers and acquisitions, called on both Warner and Fifield to clarify their position regarding possible EMI bids. As also previously reported, Warner Music confirmed they would not bid at this time on Tuesday, while yesterday a statement was issued to the London Stock Exchange by Fifield and his partners Bidco formally withdrawing their interest in the major.
The statement, from Fifield, his business partner Sam Glover and the Bidco management team, said to include a number of unnamed former EMI execs, said: "Regrettably Jim Fifield and Bidco announce that, as a result of this timetable constraint, Bidco will not be able to make an offer for EMI".
With Warner and Fifield out of the race the EMI board sent out an email to its shareholders urging them to now accept the Terra Firma offer.