rejected a $4.2 billion buyout bid from London's
, saying that "the proposal is not in the best interests of our shareholders."
EMI made the cash and stock bid Monday, according to news reports. EMI said it continues to believe an acquisition would be good for both sides but stressed that it would only do a deal that would help earnings,
reported. EMI is the world's No. 3 music company and Warner is No. 4.
The deal would have valued Warner at $28.50 a share, just about 4% above its recent trading price of $27.29. Warner shares have risen sharply this year after a rocky initial public offering last year as takeout talk has resumed swirling.
EMI has now tried to sidle up to Warner music three times. The first attempt came in 2000, around the time of the
merger with AOL. The EMI-Time Warner deal was scuttled by European regulators.
EMI shares fell 4% in London.