Private Equity firm Terra Firma says it has now secured over a quarter of EMI's shares as it extended the deadline for the remaining shareholders in the major music firm to sell at their 265 pence per share offer price to 29 Jul - the fourth and, the equity bosses say, final extension.
As of Thursday Terra Firma had secured 26.19% of the available shares in the London based music company. The committals to sell to the private equity outfit increased considerably after both Warner Music and a consortium led by former EMI chief Jim Fifield, both considered potential counter bidders, both announced they would not be making a bid at this time. As previously reported, both organisations confirmed their intentions following a call for them to do so by the UK's Takeover Panel, a non-statutory body that administers the City Of London's merger and acquisitions codes.
Despite the boost - from 3.82% at the start of last week - Terra Firma is still some way off obtaining the 90% required for the takeover deal to go through. It is not clear if the larger institutional shareholders will now fall in line, or whether they are willing to let the deal fall through allowing Warner or Fifield to return to the bidding race at a later date. The EMI board, who approved Terra Firma's takeover back in May, of course, last week sent another email to their shareholders urging them to accept the equity group's offer.
Meanwhile, some are gossiping that, with all the delays, Terra Firma might not actually be in a position to buy EMI if and when the big shareholders fall into place, because the financing put in place by the private equity firm to fund the purchase is rumored to be falling apart as the takeover bid drags on. That said, HitsDailyDouble points out that those rumours might be being put around by people wanting the deal to fall through, so you perhaps shouldn't pay them too much attention.