EMI Reportedly Ups WMG Bid To $5 Billion. Issues Statement.

UPDATE – Some sources are reporting that EMI’s offer for WMG was upped last night to $5 billion making it unlikely that Warner investors would not force the sale. Others claim that $5 billion is WMG’s asking price and that EMI has not yet offered that. EMI has confirmed that talks are ongoing.

EMI’s stock fell 3.1% on the London Stock Exchange as traders showed there concerns over the deal.

This statement was issued this morning by EMI:

“Following recent press speculation, EMI Group plc (EMI) confirms that on 1 May 2006 it made an approach to Warner Music Group Corp. (Warner Music) in connection with a proposed offer by EMI to acquire all of the outstanding shares of Warner Music for $28.50 per share, in a combination of cash and EMI shares. Subsequently, on 2 May 2006, Warner Music informed EMI that it did not wish to enter into discussions regarding EMI’s proposal. The Board of EMI continues to believe that an acquisition of Warner Music by EMI would be very attractive to both sets of shareholders but will only pursue a transaction that delivers enhanced value and earnings accretion to EMI shareholders. EMI will make further announcements as appropriate.” 

In addition tp Hypebot extensive report and commentary (below)on the possible EMI purchase of WMG, we will be staying on the story with regular updates. We’re also inviting you to comment and will publich some of the best in a Comments & Commentary feature.  (Post below or email us.)

Some additional reporting and commentary on the possible merger:

• HITS – The story plus speculation on Edgar’s next move?
• The Velvet Rope – Gossip and opinion.
• Bloomberg – The Wall Street perspective.
• The Lefsetz Letter – Commentary