Terra Firma has re-extended its deadline to buy-out EMI Group Plc after the private equity firm failed again to achieve total shareholder approval.
By 1pm ET yesterday, Terra Firma had collected only 3.82% of EMI's existing issued ordinary share capital, which represents about 31 million of the music major's shares.
Consequently, Terra Firma has decided to extend the deadline once again to 1pm ET on July 19.
Terra Firma originally made its £2.4 billion ($4.9 billion) offer for EMI in May.
Although EMI's board of directors recommended Terra Firma's "cash-now, without regulatory uncertainty" bid, only 3.53% of the shareholders gave their approval by June 28. Acceptance had improved only slightly to 3.56% by the first extended deadline of July 4.
Technically, Terra Firma should have no problems nabbing the multi-national major music group.
Yesterday, it clinched the approval of the European Commission, which had found no anti-trust issues to block the deal.
However, industry observers believe a majority of the shareholders are waiting to see if a higher offer will come from Warner Music Group (WMG), EMI's rival.
WMG's ongoing ambition to takeover EMI gained some impetus July 11. WMG is reported to have appointed Alan Mnuchin, of Wall Street investment group AGM Partners, to re-assess how to make another counterbid for EMI.
Should WMG make a bid for EMI, the European Commission would take a close look at any merger. The Commission had already been forced by a European Union court to annul the original merger between the recorded music divisions of Sony Music and BMG Music Entertainment.
EMI's shares on the London Stock Exchange remained unchanged at 268.75 pence ($5.45) when the markets opened this morning.