Stock rises on private equity news.
Stock in EMI Group climbed in morning trading today (June 26) following the publication of claims the music company was seeking private equity funding to launch a bid for BMG Music Publishing.
EMI's shareprice rose 2.7% to 285.25 pence ($5.19) after British newspaper The Times reported on Monday that the financial strategy, which could allow EMI to retain the resources to bid separately for Warner Music. EMI's initial $28.50-a-share, $4.2 billion takeover approach for Warner Music was rejected in early May.
The alternative financial structure, the paper said, could help EMI avoid regulatory hurdles in taking control of BMG's publishing assets.
An EMI spokesman declined to comment on the report.
The sale of BMG Music Publishing is expected to fetch about €1.5 billion ($1.87 billion) for its owners Bertelsmann.
Cash-rich Universal Music Group is an early front-runner in the auction for BMG Music Publishing, a process which is reported to have gathered 15 suitors.