Warner Music Surges on Buyout Rumors

NEW YORK ( TheStreet) -- Warner Music Group ( WMG) shares spiked about 25% this morning following reports that the company has hired Goldman Sachs to handle takeover bids.

In recent months, several suitors, including buyout firm Kohlberg Kravis Roberts, have approached Warner Music about buying the major record company, the New York Times reports, citing an executive familiar with the matter.

The decision to hire Goldman came after Warner Music chairman and CEO Edgar Bronfman Jr. brought the offer to the board. An offering document is expected in coming weeks.

The company's shares spiked to $6 in early morning trading and are currently up about 25% to above $5.90. More than 537,000 shares have traded hands today compared with the stock's 3-moth daily average volume of 272,000.

-- Written by Theresa McCabe in Boston.

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