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Warner Music says it won't make a takeover bid for Britain's EMI
(Associated Press WorldStream Via Thomson Dialog NewsEdge) LOS ANGELES_Warner Music Group Corp. said Tuesday it has decided against making an offer to acquire rival music company EMI Group PLC but noted it reserved the right to do so at a later time.
New York-based Warner Music said it reserves the right to make an offer or to participate in a takeover bid for Britain-based EMI by someone other than the private-equity firm Terra Firma Capital Partners.
EMI's board recommended in May that its shareholders accept a $4.88 billion (3.54 billion) takeover offer from Terra Firma.
Since then, Terra Firma has extended a deadline for EMI to accept the offer, most recently on Friday, when it set a deadline for July 19.
Many EMI stockholders have been waiting to see if Warner would come forward with a more lucrative offer.
Maltby Ltd., Terra Firma's takeover vehicle, said last week that it has received acceptances for around 3.82 percent of EMI's issued share capital under its offer.
Warner, home to recording artists including Madonna and Red Hot Chili Peppers, had been considering making another offer to purchase EMI, home to artists such as Coldplay and Joss Stone.
The two music companies have been in on-and-off merger discussions over the past seven years, but repeated talks have been stymied on several occasions by regulatory uncertainty and the inability to agree on a price.
In the latest round, Warner offered $4.2 billion (3.05 billion) in March, but EMI rejected the bid and accepted the Terra Firma offer, led by financier Guy Hands, two months later.
EMI has said that Terra Firma's offer, valuing EMI at $5.38 a share, was the best among a number of proposals it received.
Copyright 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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