Update (from the Scotsman, Wednesday)
WARNER Music has decided against making a takeover offer for British rival
EMI, two days before a deadline to submit an offer.
The British company had agreed to a £2.4 billion takeover deal from private
equity group Terra Firma in May, thwarting a seven-year flirtation between
EMI and Warner, although the US firm was set a deadline this week by the
Takeover Panel on counter bidding for the firm this time around.
However, insiders believe that Warner bosses see the deal as too expensive
and have pulled out of making a bid ahead of the deadline - although Warner
has insisted that it "reserves the right" to make an offer or to participate
in any takeover bid for EMI by someone other than Terra Firma.
The news comes as new figures showed that Warner, which is based in New
York, now has the third-largest share of the global recorded music market
behind Universal and Sony BMG.
Warner had a market share of 13.8 per cent - up from 12.8 per cent in 2005 -
while EMI dropped to a share of 12.8 per cent from 13.6 per cent in 2005.
Many EMI shareholders have been waiting to see if Warner would come forward
with a more lucrative offer.