The Warner Music Group yesterday said it had not, as yet, ruled out the possibility of making a fresh bid for the EMI Group.
As you all surely know, there has been much speculation (round here, anyway) as to whether Warner would make yet another bid for the London based major ever since the EMI board announced it had selected European private equity firm Terra Firma as its preferred bidder. Parties interested in making a rival bid have reportedly been given until 27 Jun to make their offers. Some of the other private equity consortiums initially known to be interested have said they won't bid against Terra Firma's £3.2 billion offer, but EMI's long time suitor, Warner, had so far kept their intentions secret.
Yesterday Warner said that it "continues actively to consider an offer" for its rival, but noted that any deal it proposed would be "pre-conditional on appropriate anti-trust clearances being obtained". The requirement of such clearances, in particular from the European Commission, is, of course, one of the reasons why the EMI board is recommending its shareholders sell to a private equity player outside the music business rather than another major label, because it is not a foregone conclusion the merger of two majors would get regulator approval, despite Warner's much reported and ever so slightly controversial alliance with pan-European indies body IMPALA, normally the most proactive opponents to major label mergers.
Whether Warner's deal alongside another rival takeover pitch expected to be made by former EMI Group CEO Jim Fifield will force a bidding war on EMI remains to be seen. Presumably existing shareholders in the struggling major hope so.