Feeds

EMI rejects Warner bid

'Too slow, too low'

Top 5 reasons to deploy VMware with Tegile

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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.