EMI and Permira talks collapse(3)

Permira’s takeover bid for EMI has been rejected, sending shares in the group up 3.25p to 271p today.

Permira’s bid for EMI, a UK music company, folded yesterday, according to a statement by EMI.  The private equity firm’s bid was for a reported £2.5 billion.

Until recently, sources close to the situation hoped a deal could be reached at more than 320p per share,which would value the company at about £2.5 billion, according to the Financial Times.

EMI said in a statement: “The EMI Board has not received an offer that fully reflects the prospects for and value of the company and which it could recommend to shareholders.”

Today shares in the group rose by 3.25p to 271p after they fell by 32.25p to 268p yesterday.

In November Goldman Sachs and Kohlberg Kravis Roberts reportedly approached EMI about a potential £2.5 billion offer, following their failed bid for the publishing assets of Bertelsmann, a German media group, earlier this year.

In July EMI’s merger talks with Warner Music collapsed after a European court doubted whether regulators would allow further consolidation in the music industry.

Permira has failed in the music sector before.  Its 210p per share bid for HMV, a UK music retailer, was rejected in February this year.

Yesterday Kohlberg Kravis Roberts and Permira beat rivals Apax Partners and Goldman Sachs to buy a 50.5 percent stake in German broadcaster ProSiebenSat1 from US investors led by Haim Saban.