Blackstone considers takeover of EMI
The Blackstone Group may make a €2.1-billion play for London-based EMI if a rival consortium beats it in the battle for the recorded music division of the Warner Music Group, one Sunday newspaper claimed.
Another report said EMI may seek merger talks with the rival consortium, an investor group headed by former Seagram chief executive Edgar Bronfman Jr, in order to net the division.
Senior EMI advisers reportedly believe Bronfman’s consortium would find it difficult to afford the €2.3 billion it is offering.
EMI was tight-lipped about the claims. A spokesman for the group said: “We’re not going to comment on these reports.”
On Wednesday, EMI said talks about buying Warner’s recorded music division were at “an advanced stage” as it posted broadly flat operating profits in the six months to September 30.
But on Friday, it emerged Time Warner had apparently chosen Mr Bronfman’s consortium as the preferred bidder for the division.
EMI, which reportedly has offered €1.4 billion for the division, responded by saying it had put forward “a full and fair offer with the interests of our shareholders uppermost in our minds”.
The group’s chairman, Eric Nicoli, said: “When we reach a definitive conclusion, we will make a further announcement.”
Blackstone is considering an early approach to EMI chairman Eric Nicoli after becoming convinced the UK music group has lost out to Bronfman, the Observer reported. But some analysts believe EMI may still try to see Bronfman off by putting in a higher bid, the report added.
EMI’s recorded music division has artists including Radiohead, Coldplay and Robbie Williams in its portfolio.
Earlier this week, EMI said group operating profits in the six months to September 30 rose 0.9% to €114 million against €113 million beforehand. It said the increase had come despite a global industry decline of more than 10%.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
