U.S. Warner Music Group has bid 2.5 billion pounds ($4.6 billion) for Britain's EMI Group Plc in an attempt to take control of the company that has been pursuing it, the Financial Times said on Wednesday.
The offer is worth 320 pence per EMI share which closed at 283.75 pence on Tuesday, the FT said on its Web site. EMI was not immediately available for comment.
On May 3 Warner Music (WMG.N: Quote), the world's fourth largest music company and home to Green Day and Red Hot Chilli Peppers, rejected a $4.2-billion takeover approach worth $28.50 per share from its larger rival EMI, the latest move in a long-running quest to combine the companies. EMI, whose artists include Coldplay and Robbie Williams, said at the time that buying Warner Music would be a good deal for both companies' shareholders.A combined EMI-Warner Music would be roughly on par with music majors Universal Music and Sony-BMG, and analysts estimate a merger would produce several hundred million pounds in cost savings. However, EMI and Warner Music have tried to combine several times before without success.
On May 23 EMI reported annual results which included a surge in digital music sales to 112 million pounds from 47 million pounds. The music industry expects revenues from mobile phones and song downloads eventually to offset the continued decline in physical formats like CDs.
Source: Reuters
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