This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/6623015.stm
The article has changed 4 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| EMI suitors 'circle over buyout' | |
| (about 10 hours later) | |
| UK music group EMI has confirmed that it has been courted by a number of suitors looking to buy the company. | UK music group EMI has confirmed that it has been courted by a number of suitors looking to buy the company. |
| EMI, which looks after Gorillaz, Robbie Williams and Lily Allen, said the talks were "preliminary" and there was no certainty that a bid would be made. | EMI, which looks after Gorillaz, Robbie Williams and Lily Allen, said the talks were "preliminary" and there was no certainty that a bid would be made. |
| A number of companies have been linked to the music group and the Financial Times said US investor One Equity was among those to have contacted EMI. | A number of companies have been linked to the music group and the Financial Times said US investor One Equity was among those to have contacted EMI. |
| EMI has issued two profit warnings this year and is restructuring its business. | EMI has issued two profit warnings this year and is restructuring its business. |
| In London, shares in EMI closed 18.75 pence, or 8.24%, higher at 246.25p. | |
| "This latest pitch from One Equity implies an offer per share of around 255p, based on current net debt levels of £974m, " said Patrick Yau, an analyst at Bridgewell Securities. | "This latest pitch from One Equity implies an offer per share of around 255p, based on current net debt levels of £974m, " said Patrick Yau, an analyst at Bridgewell Securities. |
| 'No certainty' | 'No certainty' |
| There can be no certainty that any offer will ultimately be made EMI Group See EMI Group's share price | There can be no certainty that any offer will ultimately be made EMI Group See EMI Group's share price |
| The firm has been at the centre of takeover talk since it rejected a £2.1bn offer from rival Warner Music in March as too low. | The firm has been at the centre of takeover talk since it rejected a £2.1bn offer from rival Warner Music in March as too low. |
| EMI was also concerned that the Warner bid would create operational and regulatory risks. | EMI was also concerned that the Warner bid would create operational and regulatory risks. |
| Analysts said that the company was still an attractive takeover target. | Analysts said that the company was still an attractive takeover target. |
| "Further to recent speculation, EMI group confirms that it has received a number of preliminary indications of interest to acquire the company," EMI said in a statement. | "Further to recent speculation, EMI group confirms that it has received a number of preliminary indications of interest to acquire the company," EMI said in a statement. |
| "There can be no certainty that any offer will ultimately be made. | "There can be no certainty that any offer will ultimately be made. |
| According to the FT, One Equity has sent a letter of intent to the board of EMI, and said it would be interested in buying the firm. | According to the FT, One Equity has sent a letter of intent to the board of EMI, and said it would be interested in buying the firm. |
| Artists like Lily Allen have not been able to halt EMI's sales slide | Artists like Lily Allen have not been able to halt EMI's sales slide |
| The newspaper said a takeover by One Equity, should it be made, could be worth as much as $6bn. | The newspaper said a takeover by One Equity, should it be made, could be worth as much as $6bn. |
| EMI has suffered in recent years by the availability of digital downloads, internet piracy and a lack of big hits. | EMI has suffered in recent years by the availability of digital downloads, internet piracy and a lack of big hits. |
| Analysts have said that private investors are principally attracted to future royalties from EMI's back catalogue, which includes prized albums by the Beatles, the Beach Boys, David Bowie and Cold Play. | Analysts have said that private investors are principally attracted to future royalties from EMI's back catalogue, which includes prized albums by the Beatles, the Beach Boys, David Bowie and Cold Play. |
| They say private equity could be put off if the debt-laden firm follows through with plans to securitise this arm of the business as part of wider restructuring plans costing £110m. | They say private equity could be put off if the debt-laden firm follows through with plans to securitise this arm of the business as part of wider restructuring plans costing £110m. |
| EMI reports its preliminary results on 23 May and analysts expect little respite in the tough trading conditions currently being experienced by the group. | EMI reports its preliminary results on 23 May and analysts expect little respite in the tough trading conditions currently being experienced by the group. |