Via Coolfer...
"Big news this morning about a private equity bid approach for EMI. The company acknowledged it has received a bid of £2.5 billion ($4.87 billion) from an unnamed party of multiple private equity firms.
The Financial Times reported today that private equity firms Kravis Kohlberg Roberts and Goldman Sachs are in talks with EMI. In June of 2006, EMI rejected a £2.5 billion by Warner Music Group.
Update: Kate Norton at BusinessWeek.com has an insightful and, I'd say, spot on article about the EMI bid. Analysts note that the cost-cutting that makes an EMI/WMG merger so attractive would not be realised if EMI was acquired by private equity firms. Where is the value?
"The most likely route to value creation would be to sell off the EMI Music arm, where underlying profit from operations fell to £11.5 million from £38.3 million in the first six months."
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