Warner Offers EMI $197 Million to Clinch Takeover Deal: Report
Warner Music plans to offer EMI shareholders $197 million (100 million pounds) if its current offer is blocked by regulators, in an attempt to make its bid for the U.K. music label more attractive than rival private-equity bids, the Sunday Times of London reported.
The one-off payment by Warner would be an attempt to compensate for the added difficulties associated with accepting the Warner deal. A rival private equity deal could be completed much more quickly as it wouldn’t face the same regulatory hurdles that Warner would have to comply with, according to the paper.
Warner has been attempting to buy EMI for more than six years and the latest deal offers $9.06 billion, or 260p a share, for the home of recording artists like Joss Stone and Coldplay.
The private-equity groups believed to be interested in EMI include One Equity Partners, Cerberus Capital and Fortress, the Sunday Times said.