Wednesday, July 18, 2007

EMI remains up in the air

Terra Firma have extended their deadline for EMI shareholders to accept their offer for the third time - it might be a private equity firm, but its inability to stick to a final line suggests it would be a rotten evil genius. Can you imagine Darth Vader wheezing "alright, one last chance, then we'll destroy your home planet if you don't comply."

The new deadline is Thursday, and reflects a rather poor take-up of TF's offer. Only 3.82% of EMI shareholders had said yes to the approach, which is quite a way short of a takeover. TF believe that other shareholders were holding off to see if there was to be a counter-offer from Warners, who have now ruled themselves out of the race - although with a hint that if the Terra Firma bid flops, they'd still be interested.

Which means although the EMI board is now formally suggesting their future should lay alongside the German Motorway network, even as the vows are about to be exchanged, everyone will be wondering if they're doing the right thing.

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