EMI, one of the big four record labels, has rejected an approach made by
Warner Music Group, saying the offer was too low and format of the bid too cumbersome.
"WMG’s proposal was considered by the Board which concluded that it is not in the best interests of EMI shareholders to entertain a pre-conditional offer which would entail prolonged regulatory uncertainty and unacceptable operational risk at a critical time for the Company," the music group said in a statement
It continued:
"The Board also regards a price of 260 pence per share as inadequate, having regard to the stand-alone value of EMI, the synergies available from a combination with WMG and the risks identified above." In October 2000, both companies broke off from a proposed merger because the didn't anticipate regulatory approval.
Source:
The Register
Written by: James Delahunty @ 4 Mar 2007 16:54
