EMI Vows to Pursue Warner

Revenue rises in the latest year.
Publish date:

Music big

EMI Group

reported strong full-year profits and vowed to continue its pursuit of rival

Warner Music

(WMG) - Get Report


The London-based company recorded a nearly 20% rise in profits. Revenue was up 3.9%, to $3.9 billion, for its fiscal year ended March 31.

The company, which is home to artists such as




, said in its earnings statement that "we continue to believe that an acquisition of Warner Music by EMI would be very attractive to both sets of shareholders but we will only pursue a transaction that delivers enhanced value and earnings accretion to our shareholders."

A joint group would create the world's third largest music company after Sony/BMG and Universal.

The company approached Warner Music Group in early May and made an offer to acquire Edgar Bronfman Jr.-led Warner Music for $28.50 per share, or $4.2 billion. That offer was swiftly rejected by Warner's board.

Warner Music shares traded as high as $31 following word of the EMI bid, but have since declined to a recent $27.07. Analysts expect EMI to come back with another bid.