EMI rebuffed by Warner

Music group EMI today has revealed a fresh blow in its long-running attempts to secure a takeover of US-based rival Warner Music Group.

A combination would create the world’s third largest music company behind Universal Music and Sony BMG, bringing together artists such as Coldplay and Robbie Williams in the EMI stable with Madonna in the Warner camp.

But the London-based company said today it had been told by the US group that it did not wish to enter into talks about a takeover by EMI.

Such a deal has long been expected in the industry and EMI failed to land its rival with a £1bn (€1.4bn) bid at the end of 2003.

The business was eventually sold by its owner Time Warner to a private equity consortium led by Edgar Bronfman Jr, the former chief executive of Seagram.

EMI approached Warner on Monday with a cash and shares offer that valued the US business at around $4.23bn (€3.3bn).

The offer was worth $28.50 a share and compared with a 52-week high for Warner Music’s share price of $27.88.

A day after its approach, EMI said it was informed by Warner Music “that it did not wish to enter into discussions regarding EMI’s proposal”.

The UK company indicated it remained interested in a takeover of Warner Music, but not at any cost.

It said: “The board of EMI continues to believe that an acquisition of Warner Music by EMI would be very attractive to both sets of shareholders but will only pursue a transaction that delivers enhanced value and earnings accretion to EMI shareholders.”