EMI Group rejects takeover bid from Warner Music Group

EMI Group rejects takeover bid from Warner Music Group

EMI Group has rejected a takeover bid from smaller U.S. rival Warner Music Group. The offer was worth 2.5 billion pounds and EMI said that it was totally unacceptable.

Interestingly, EMI is itself pursuing Warner Music Group and are trying to take over its operations. The offer however apparently helped the company as its shares rose 9.6 percent to set a four-year high at 311 pence in early trading.

Last month, Warner had rejected a similar takeover bid from EMI. That bid was worth around 2.3 billion pound. EMI said that they have raised that offer to around $31 cash per Warner Music share.

EMI added in a statement: “EMI continues to believe that an acquisition of Warner Music by EMI at $31 per share in cash would be very attractive to both sets of shareholders and would deliver value to EMI’s shareholders which is far superior to Warner Music’s revised alternative proposal.”