Terra Firma tightens grip on EMI
Awaits 90 per cent backing, given extended deadline
Private equity firm Terra Firma looks almost certain to buy EMI following a last-minute extension for its £2.4bn agreed bid from the music group.
EMI had given Terra Firma, founded by Guy Hands, until 1pm yesterday to secure the thumbs up from 90 per cent of its shareholders, but it had only garnered 85 per cent by Sunday, not enough to close the deal.
An extended deadline of this Wednesday at 1pm (GMT) has now been granted, which should give Terra Firma enough breathing space to persuade the final five per cent of shareholders needed for the 265 pence per share agreement to go ahead.
According to the Financial Times, shareholders had been sitting tight to await the outcome of any counter bid from Warner Music Group.
It confirmed 10 days ago that it was pulling out of the race to buyout its rival, clearing the way for a private equity deal.
EMI shares are up 0.89 per cent, trading at 254.25 pence on the London Stock Exchange. ®