EMI Confirms Takeover Approaches

Shares in EMI soared this morning after the music group revealed that it was in takeover discussions again.

The firm, which has Lily Allen, Coldplay and Robbie Williams on its books, confirmed this morning that it had received "a number of preliminary indications of interest to acquire the company".

The announcement followed reports that a private equity group was prepared to pay £3bn for the company. One Equity, the private equity firm affiliated to American bank JPMorgan, sent EMI a letter last month proposing a takeover, according to the Financial Times today.

EMI shares rose by nearly 10% in early trading, gaining 20.5p to 248p. The company's future has been uncertain since takeover talks with US rival Warner collapsed in March.

EMI had rejected Warner's offer of 260p a share, valuing the company at £2.5bn, claiming it was too low and warning that such a merger would probably fall foul of regulatory problems.

So far this year it has issued two profit warnings. Last month, in another blow to its long-suffering investors, it suspended its dividend and warned that revenues will fall 15% this year.

Source: http://business.guardian.co.uk