British music group EMI, home to Robbie Williams and Coldplay, said yesterday it had received a number of takeover approaches, after a report that private equity firm One Equity Partners had joined the list of suitors. The news sent the group's share price up over 8 per cent.
EMI, which rejected a £2.1 billion bid proposal from long-time suitor Warner Music in March, would not say how many approaches it had had or who they were from.
The statement followed a report in the Financial Timeswhich said, without citing sources, that One Equity Partners had approached EMI with an offer that could value the world's third-biggest music group at more than $6 billion.
One Equity Partners, a unit of JP Morgan Chase and Co, could not immediately be reached for comment. "Further to recent speculation, EMI Group plc confirms that it has received a number of preliminary indications of interest to acquire the company," EMI said in a statement. "There can be no certainty that any offer will ultimately be made."
Analysts at Numis noted that a deal with Warner would unlock further synergies while UBS said Warner would be better placed to offer more than private equity. But analysts have said EMI appears reluctant to engage with Warner.
It is also not clear whether any merger would gain regulatory approval as the deal that created Sony BMG is being examined by the European Commission.
- (Reuters)
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