Stock soars more than 10%.
EMI Group plc is the target of a takeover. The British music major confirmed in a statement to the London Stock Exchange today (Nov. 28) that it has "received a preliminary approach for the company which may or may not lead to an offer being made for the company." EMI did not reveal the identity of its potential suitor.
EMI disclosed the move after its stock soared more than 10% in morning trading to 290p, on speculation that private equity firms including Goldman Sachs Group and Kohlberg Kravis Roberts & Co. were circling. According to a report published in the Financial Times, a possible bid could be worth £2.5 billion ($4.87 billion).
In July, EMI and Warner Music shelved plans to merge in light of a European Union court decision to overturn approval of the rival Sony BMG joint venture. The previous month, EMI rejected a £2.5 billion approach from Warner Music.