Feeds

Terra Firma ups ante for EMI

Don't bite the Hands that feed you...

Boost IT visibility and business value

A private equity buy-out at EMI is looking increasingly likely with Guy Hands - the money man behind Terra Firma - hiking the bid to buy the music firm with a new offer of £3.7bn.

Just last week the British music group had asked its shareholders to mull over a smaller offer of £2.4bn from Terra Firma.

According to today's Financial Times, Hands raised around half of the funds needed to submit the offer, with Terra Firma staff contributing more than £135.64m (€200m) to the pot.

EMI has been keen to secure a private equity agreement for some time now and, with Terra Firma raising the stakes even higher, the music group could be close to agreeing a buy-out.

Such a private capital deal is favoured by EMI - one of the Big Four in the music biz - because it will allow the firm to avoid stringent EU regulations.

The record label part of the music group has been battling a 15 per cent drop in revenue and watched pre-tax profits tumble by more than 60 per cent in the first three months of 2007 compared to a year ago.

Terra Firma's willingness to stump up an extra £1.3bn for EMI could be seen by some as an aggressive stance to shoulder the likes of Warner and other private equity firms out of the picture.

Arch rival Warner was said to have been considering a solo offer for EMI after ditching the possibility of its own private equity bid, according to a report in Monday's Guardian, but the firm refused to comment. ®

Build a business case: developing custom apps

More from The Register

next story
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Linux Foundation says many Linux admins and engineers are certifiable
Floats exam program to help IT employers lock up talent
prev story

Whitepapers

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 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
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.