There is ever more growing speculation regarding the chances of private equity firm Terra Firma actually completing its takeover of EMI.
As much previously reported, Terra Firma won the support of the EMI board for its takeover proposals in May, but the major music firm's shareholders have not been quick to take up the 265 pence per share offer being made by the private equity firm. Clarification last week from Warner Music and former EMI chief Jim Fifield that neither would stage a counter-bid at this time did give Terra Firma something of a boost in securing commitments from existing shareholders to sell, but reports say that the those commitments only currently account for about 25% of the overall shares. Terra Firma had said it would need 90% in place for the takeover to go ahead.
Reports suggest that key to Terra Firma's bid is the involvement of Citigroup, and that it is they who are demanding a 90% commitment before proceeding. The self enforced deadline to have those commitments in place is this weekend. Terra Firma have said that is the final deadline, seemingly again because Citigroup have said the same, though insiders say the bank might accept one last deadline extension if 50% of shares are committed to the deal by Sunday.
Others now question whether Terra Firma will ultimately secure sufficient shareholder commitments for the takeover to go ahead, suggesting the deal may eventually fall through allowing Warner and Fifield back into the race.