Feeds

EMI rejects Warner bid

'Too slow, too low'

Bridging the IT gap between rising business demands and ageing tools

EMI's board today rejected an approach by Warner Music Group, saying the price was too low and the format of the bid too cumbersome.

"WMG’s proposal was considered by the Board which concluded that it is not in the best interests of EMI shareholders to entertain a pre-conditional offer which would entail prolonged regulatory uncertainty and unacceptable operational risk at a critical time for the Company," the music group said in a statement issued late on Friday afternoon, UK time.

"The Board also regards a price of 260 pence per share as inadequate, having regard to the stand-alone value of EMI, the synergies available from a combination with WMG and the risks identified above."

Warner Music first courted EMI seven years ago, but in October 2000 the pair broke off from a proposed merger as they didn't think regulatory approval would be forthcoming. In 2004, EMI tried to get hitched to Sony-BMG, but a legal challenge from the independent label sector sank the deal last year.

This time, the only stumbling block seems to be the EMI board itself.

Warner has agreed terms with the independents' global trade group Impala which sees the indies back the merger in return for concessions on divesting repetoire, competition pledges, and financial backing for Merlin, the indies' new global digital music licensing agency.

The UK label Ministry of Sound quit the UK indie label trade group AIM in protest at the deal, although it's believed that MoS doesn't know what the specific pledges are. An independent source told us that MoS had declined to sign an NDA allowing it to view the Impala-Warner agreement. ®

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.