EMI Group's shareprice slipped today (May 15) following a U.K. weekend press report which suggested the music major was poised to raise its buyout offer for Warner Music Group to $30 per share.
Stock in EMI Group slipped today (May 15) following a U.K. weekend press report which suggested the music major was poised to raise its buyout offer for Warner Music Group to $30 per share.
WMG could yet hold out for a higher bid of about $33 per share, the Sunday Observer newspaper said.
An EMI spokesperson could not be reached for comment.
Earlier this month, WMG publicly rejected EMI's proposed $28.50 offer, which would have valued the company at $4.2 billion. In a statement, WMG said May 3 that the initial offer was "not in the best interests of our shareholders."
EMI refused to close the door on a higher bid by suggesting, in a separate May 3 statement, that it continued to believe an acquisition of WMG to be "very attractive to both sets of shareholders."
Stock in EMI today closed down 2.15% to 273p. More than 18 million shares changed hands on the London Stock Exchange against an average daily volume of 12.48 million.
Meanwhile, London-based institutional and corporate stockbroker Teather & Greenwood today reiterated its "hold" stance on EMI's stock.
Speculation on an EMI/Warner Music merger has arisen frequently since the two companies initially attempted to amalgamate in 1999. Those plans were scuppered when it became clear that the pact would not bear scrutiny from the European Commission's competition department. Another attempted merger in 2003 also came to nothing.