Music group EMI says it has pulled out of the race for Time Warner's recorded music division.
The London-based group says it has been unable to agree a deal with the US company that would be acceptable to both parties and in the interests of EMI's shareholders. EMI is believed to have offered up to £1 billion for the recorded music business of Warner Music Group. But it is understood to have been trumped by a rival £1.6 billion bid from an investment consortium led by entertainment entrepreneur and former Seagram chief executive Edgar Bronfman Junior. As news emerged of the rival offer last week, EMI called its bid "a full and fair offer with the interests of our shareholders uppermost in our minds". EMI chairman Eric Nicoli said: "We have concluded that it is no longer possible to reach an agreement on terms which would be acceptable to both parties and in the interests of EMI's shareholders." One weekend newspaper report claimed EMI could face a £1.5 billion takeover move from US private equity group Blackstone if it failed in its bid. Another report said EMI could seek merger talks with the Bronfman consortium in order to secure the Warner division. EMI has refused to comment. In a statement today, EMI reiterated aspects of its interim results announcement last week, in which it posted broadly flat operating profits in the six months to September 30 of £79.7 million against £79 million. EMI's recorded music portfolio includes artists including Radiohead, Coldplay and Robbie Williams.