EMI Group may have rejected Warner Music Group’s £2.1 billion ($4.2 billion) takeover bid in March, but the record label has other suitors still. The company told the London Stock Exchange today “that it has received a number of preliminary indications of interest to acquire the company”. FT fingered one of the potential bidders as private equity group One Equity, which is affiliated to JPMorgan bank; the paper said it had offered £3 billion ($6 billion) in a letter sent last month. Forbes even speculated WMG may still be involved: “It’s possible that the American music powerhouse may have now teamed up with a private equity fund to launch another bid – a takeover solely from private equity wouldn’t see the same kind of synergies that would come with a tie-up between the two record labels.”
Competition concerns and fears EMI was overpriced (it had issued several profit warnings) put paid to WMG’s flirtation with the label, which, if consummated, would have controlled 25 percent of the industry. EMI had previously also rejected a £2.5 billion ($5 billion) bid thought to be from London PE firm Permira. On today’s news, EMI’s shares saw their biggest rise since late November 2006. It said there was no certainty of a deal and would make further statements in due course.