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EMI receives Warner bid approach | EMI receives Warner bid approach |
(about 2 hours later) | |
Music group EMI says it has received an approach from US rival Warner Music that could lead to a takeover bid. | Music group EMI says it has received an approach from US rival Warner Music that could lead to a takeover bid. |
The move is the latest twist in a battle which has seen both firms try to buy the other in the past seven years. | The move is the latest twist in a battle which has seen both firms try to buy the other in the past seven years. |
The new approach by Warner Music comes after EMI issued a profit warning last week - its second of the year. | |
However, EMI - whose artists include Coldplay and Robbie Williams - said it had not received a firm offer and added there was no certainty one would come. | |
News of the approach pushed EMI's shares up, and in early morning trade they were 15.75 pence, or 7.1%, higher at 237.25p. | |
Competition question | Competition question |
Previous attempts to merge EMI and Warner Music - the first coming in 2000 with another in 2003 - have come to nothing. | |
Last year, both companies made attempts to buy the other, but the moves were scrapped following regulatory fears. | Last year, both companies made attempts to buy the other, but the moves were scrapped following regulatory fears. |
class="" href="http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/3/23438/intraday.stm">See EMI's share price | |
In June 2006, a European court annulled approval of Sony Music's 2004 merger with Bertelsmann's BMG, and worries over whether authorities would allow an EMI-Warners tie-up caused the firms to end talks. | |
Last week, EMI - the world's third-largest music group - said that profits for the year to March would be "significantly" below expectations. | |
It said sales in its recorded music division were expected to be 15% lower than the year before, with sales in its North American division down 20%. | |
Along with other music companies, EMI has been hit by the trend of consumers downloading individual songs from the internet rather than buying whole albums in physical form. | |
The label has also seen disappointing sales of major releases such as Robbie Williams' Rudebox. | |
At the weekend, the Sunday Times reported that EMI was planning a financial overhaul which would see it borrow £1bn against its publishing business in order to pay off more expensive debt elsewhere in the group. |