Terra Firma extends bid for EMI

Shareholders hold out for better offer

EMI Group’s prospective new owner, private equity firm Terra Firma, has extended for a third time its 265 pence ($5.38)-a-share offer for the music company.

Terra Firma affiliate Maltby said Friday that 3.82% of EMI’s existing shareholders had accepted the £2.4 billion ($4.87 billion) offer and, as a result, its offer has again been extended, this time to July 19.

Shareholder reluctance to vote in favor of the bid is thought to stem from their belief that Warner Music will make an improved offer for its rival, but Warner has so far remained silent on its intentions.

Indeed, with the record industry suffering a decline of about 20% in sales during the first half of this year, observers are now speculating that Warner may get cold feet in trying to secure the funding to outbid Terra Firma.

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