Warner Music Considers EMI Buyout Bid
NEW YORK (
) --
Warner Music Group
(WMG) - Get Report
shares are up more than 7% today following reports that it is considering making a $750 million bid for
EMI's
recorded music division.
The bid could be lodged with EMI's owner, private group
Terra Firma
, within the next few weeks, the U.K.-based
Guardian
on Sunday.
Terra Firma chief investment officer Guy Hands says he's not interested in a sale, but is likely under pressure from EMI's main creditor bank,
Citigroup
(C) - Get Report
to make a deal.
In 2007, Hands borrowed $4.5 billion from the investment bank to keep EMI from shutting down. If Hands cannot produce enough funds to pay back his debt, EMI could be taken over by Citigroup.
Hands and Citigroup are expected to discuss negotiations sometime in the coming weeks.
Warner Music shares are up about 7.15% to around $5.70 in late afternoon trading.
-- Written by Theresa McCabe in Boston.
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