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EMI likely to reject Euro bid

Music giant thought to be looking for $5.5 billion offer

EMI is expected to reject a takeover bid from European private equity outfit Permira.

The music conglom is thought to be holding out for a bid that would value it at about £2.8 billion ($5.5 billion). Although neither company has commented, Permira is understood to be lining up a $4.95 billion bid.

Reports suggest that Permira’s potential $6.14-per-share offer falls short of the EMI board’s valuation of about $6.93.

Permira advises the 19 Permira Funds, which total approximately $29.3 billion.

Those funds have invested in more than 280 transactions in more than 15 countries.

Given the potential level of investment in EMI, it is thought that Permira is drawing up its bid with at least one other private equity firm.