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Financier snaps up music giant EMI(Western Mail Via Thomson Dialog NewsEdge) Financier Guy Hands yesterday succeeded in his attempt to snap up EMI, after shareholders at the music group finally gave their support to the bid. Just over 90% of EMI investors gave their consent to the pounds 2.4bn takeover deal by Mr Hands' private equity group, Terra Firma. The buyout group first launched its recommended bid for EMI, home to artists such as Lily Allen and Robbie Williams, in May, but was forced to extend the offer deadline after shareholders held off giving their support to the deal. The delay came as investors eyed a widely-expected rival offer from Warner Music, which boasts artists such as Madonna and the Red Hot Chili Peppers. But following a confirmation that Warner would not be making a bid for the group last month, shareholders had until lunchtime yesterday to accept the deal. The Terra Firma deal has already received regulatory clearance from the European Commission. EMI, which also includes Joss Stone and The Chemical Brothers in its portfolio, is one of the world's four biggest record companies. But the group has suffered from falling sales in recent years amid the growing popularity of digital downloads and, in May, posted a 61% drop in full-year underlying pre-tax profits to pounds 62.7m. It had been in on-off discussions with Warner since 2000 regarding a possible takeover or merger, as both groups sought to fight the impact of the changing face of the music industry. Regulatory issues have been a major factor in preventing a tie-up between the firms. Reports have speculated that Warner is now likely to try to strike a deal with Terra Firma for EMI's recorded music division, leaving the new owner with the group's profitable music publishing arm. Following a string of profits warnings over the last year, EMI initiated a pounds 110m restructuring programme, including savings from shedding layers of management and the loss of hundreds of jobs in both Europe and the USA. Copyright 2007 Western Mail & Echo Ltd, Source: The Financial Times Limited |