EMI + WMG: Analysts & The Markets Weighs In

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

One Merrill Lynch analyst who likes the combined companies calls it a "merger of equals" and predicts that merger rather than acquisition by one party or the other is a likely outcome. (PaidContent)

The Financial Times reports that EMI shareholders are split over the possible WMG acquisition particularly if it’s at a premium price.  FT also says that any acquisition is likely to be funded in large part by a large stock sale, a concept that is also meeting some shareholder resistance.

Variety.com delivers its own round-up of the merger talks and concludes that Warner-Chappel publishing would probably not be part of any deal both because of costs and European regulatory reasons. EMI controls the top song catalog in the world but Warner Chappell comes in a close second.

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