European private-equity firm Terra Firma has extended until Aug. 1 its deadline to buy-out EMI Music Plc, after reporting almost 85% shareholder approval for the deal.

By 5pm on July 27, the private-equity company had clinched 84.94%, Terra Firma said today.

Under the new conditions, Terra Firma has until 1pm ET on Aug. 1 to obtain a minimum 90% approval to proceed with the offer.

The U.K.'s Takeover Panel, the body responsible for approving the country's mergers and acquisition deals, had earlier set July 27 as the deadline on the £2.4 billion ($4.87 billion) offer.

Insurance giant Allianz Insurance Plc, which holds 96,600 shares, was among the shareholders holding-back on accepting the offer by the previous deadline, Terra Firma said in a statement issued this morning to the London Stock Exchange.

Terra Firma added: "Except with the consent of the Takeover Panel, if the offer has not become or been declared unconditional as to acceptances on or before Wednesday, Aug. 1 2007, it will not be extended thereafter and will lapse."

The 90% condition was imposed by investment bank Citigroup, which has agreed to lend Terra Firma £2.5 billion ($5.1 billion) to buy EMI.

EMI shares rose 4.75 pence ($0.96) to 256.75 pence ($5.51) when the markets opened this morning. Terra Firma is offering 265 pence ($5.38) a share.