Warner rules out EMI offer 'for the moment

US-based Warner Music Group says it has decided against making an offer to acquire British rival music company EMI.

But Warner Music, based in New York, said that it reserves the right to make an offer or to participate in a takeover bid for EMI by someone other than the private-equity firm Terra Firma Capital Partners.

EMI’s board recommended in May that its shareholders accept a $4.88bn (€3.56bn) takeover offer from Terra Firma, which is run by financier Guy Hands.

Since then, Terra Firma has extended a deadline for EMI to accept the offer, most recently on Friday, when it set a deadline for tomorrow.

EMI is home to stars including Lily Allen, Norah Jones and Robbie Williams.

Many EMI stockholders have been waiting to see if Warner would come forward with a more lucrative offer.

Warner, home to recording artists including Madonna and Red Hot Chili Peppers, had been considering making another offer to purchase EMI.

The two music companies have been in on-and-off merger discussions over the past seven years, but repeated talks have been stymied on several occasions by regulatory uncertainty and the inability to agree on a price.

Maltby Ltd, Terra Firma’s takeover vehicle, said last week that it has received acceptances for around 3.82% of EMI’s issued share capital under its offer.