Private equity firm Terra Firma Capital Partners extended the deadline for its $4.8 billion takeover bid for EMI Group, home to the Beatles and Coldplay, hoping to win over shareholders who are holding out for a counterbid from former suitor Warner Music.
The offer was extended on Thursday until July 12 from July 4. It is the second time Terra Firma has extended its offer. It said Thursday that it has received acceptances for around 3.56% of EMI's issued share capital under its offer.
The EMI board recommended in May that its shareholders accept the Terra Firma offer, made through its takeover vehicle, Maltby but many stockholders are waiting to see if rival Warner will come forward with an offer.
Warner said last month that it was considering making another offer to purchase EMI. Warner Music and EMI 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.
In the latest round, Warner offered $4.2 billion in March, but EMI rejected the bid and accepted the Terra Firma offer, led by financier Guy Hands, two months later.
EMI said that Terra Firma's offer, valuing EMI at 265 pence ($5.36) a share, was the best among a number of proposals it received.
EMI shares rose sharply after Terra Firma's offer, but have since slipped back as Warner has failed to start a bidding war. They were trading just above the offer price at 268.63 pence at close on Thursday.
EMI can continue to extend the offer period until the end of the month.