EMI Stock Up After Profit Warning And New Anti-Takeover Plan

EMI stock rose 8% yesterday on the London Exchange after reporting profits of $349 million exceeding analysts expectations.  At the same time the company forecast that despite impressive 59% gains in digital
sales (did a $5 million advance from Apple help a little?) overall music revenue would be down 15% for the year.

EMI also unveiled plans to borrow against the future earnings of it’s profitable publishing catalog to fund operations and new initiatives.  Analysts say that the move also creates a "poison pill" making any merger or takeover by the Warner Music Group or others that much more difficult.