EMI To Raise Warner Bid To $30/shr

The world's third-largest music company EMI could raise its offer for smaller rival Warner Music to $30 per share after the U.S. firm rejected its $28.50 offer earlier this month, the Observer newspaper said.

But Warner could still hold out for a higher bid of about $33 per share, the newspaper said. EMI, home to artists such as Coldplay and Robbie Williams, offered $4.2 billion at the start of May and said it believed the acquisition would be a good deal for both comapnies' shareholders. Warner rejected the bid and sources close to the situation told Reuters then the offer did not value the company appropriately.

EMI was not immediately available.