Shares in EMI Group gained as much as 7.1 percent on Wednesday following a report that Warner Music Group Corp. was preparing a new bid to buy the world's third largest music company.
The Times, citing unnamed investors, said Warner Music's Chief Executive Edgar Bronfman had targeted the group's shareholders and emphasised the benefits of a future tie-up during a visit to London earlier this month. "He is not thought to have discussed a specific future bid for EMI," the report said.
EMI's shares increased 18 pence to 270.5p in earlier trading before paring the gains to trade at 262p by 10:13 GMT (11:13 a.m. British time), a 3.8 percent rise from Tuesday's close. The company is home to artists including Robbie Williams and Coldplay, while Warner Music, the smallest of the four major music companies, is behind Madonna and Gnarls Barkley.
The Times said Bronfman was thought to have spoken to Fidelity, which holds a 7 percent stake in EMI, as well as Aberdeen Asset Management and some hedge funds.
Warner Music and EMI declined to comment.
Earlier this year Warner Music was locked in a $4.6-billion (2.4-billion-pound) takeover battle with EMI, with each company trying to buy the other, but hopes of a deal were quashed in June when a European court annulled approval of the 2004 merger of Sony Corp.'s <6758.T> Sony Music and Bertelsmann's BMG.
The ruling cast doubt on whether an EMI-Warner deal would get regulatory clearance, and the companies abandoned talks until there was more clarity from competition regulators.
The Times, however, said Bronfman was optimistic about getting approval from European officials.
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