Terra Firma close to buying EMI

LONDON - Private equity group Terra Firma said today it had extended the offer period for its recommended £2.4 ($6.28) billion cash takeover of music firm EMI Group Plc until July 12.

Terra Firma said it had received acceptance for its offer from shareholders with around 3.56 per cent of EMI's issued share capital and that other investors are waiting to see if rival Warner Music Group will make a counterbid.

Long-term suitor Warner has said it is still considering its options regarding the London-based music group. Terra Firma can continue to extend the offer period until the end of this month.

EMI said in May it had agreed to a cash takeover at 265p per share from the group, which is run by financier Guy Hands.

Any Warner bid would probably face regulatory hurdles because the European Commission is still reviewing the deal that created Sony BMG, meaning Warner would have to offer around 300p per share to persuade investors to take the risk.

EMI shares initially jumped beyond the Terra Firma offer price but have slowly slipped back in recent days.

- REUTERS