More on the proposed Warner takeover of EMI? More? Well, not much more. But word has it Warner will offer EMI 260p per share if and when it makes a new takeover offer, somewhat down on the 320p it offered last year, and the 310p investment firm Permira recently offered, both offers that EMI turned down. Given the two profit warnings EMI has subsequently issued the new lower price may be fair, but many doubt that EMI's board will approve such an offer - mainly because doing so would require admitting their management of the major in the last year has resulted in a considerable fall in value. That said, insiders also reckon Warner will make a cash offer to EMI's shareholders (rather than offering them shares in a merged venture) which, given the continued instability in the record business, would probably be quite an attractive deal - attractive enough for key shareholders to enable a hostile takeover. EMI's actual share price was 244.25p yesterday, having risen from 240p following the confirmation of Warner's interest in buying the firm.
Feb 22, 2007
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1 min read
Warner planning cash offer for EMI at 260p per share
Warner is reportedly planning a cash offer of 260p per share for EMI, lower than earlier bids, though insiders doubt EMI's board will accept it.