EMI Group rejects takeover bid from Warner Music Group

EMI Group rejects takeover bid from Warner Music Group

EMI Group Plc is the third largest music company in the world and they have announced that they are rejecting the latest 2.1 billion-pound takeover bid from Warner Music Group.

EMI said that the offer price is too low. Warner has offered them 260 pence a share which is around 17 percent higher than EMI’s share’s prevailing price in the stock market.

Market analyst Bishop Cheen said in a note on these new developments: “EMI’s holding out for a better premium. These two companies, because of their size, do belong together. But it’s going to take a long time.”

Warner had last year offered the company 320 pence a share but the talks were abandoned at that time as well.

Experts have said that if the two companies merge together, they would have a quarter of the global market overtaking Sony BMG to become the second largest player in the market. Vivendi SA’s Universal Music Group would continue to remain at the top.