Terra Firma re-extends EMI offer

Check EMI's share price

Private equity group Terra Firma has extended its offer to buy EMI for a second time as investors hoping for a counterbid hang on to their shares.

Shareholders have been given until 12 July to accept the recommended £2.4bn cash offer as holders of only 3.56% of the share capital have accepted so far.

Warner Music says it is still considering whether to make a rival offer for EMI.

Terra Firma is allowed to extend the offer until the end of the month.

EMI shares initially jumped above the 265 pence per share being offered by Terra Firma, but have since fallen back close to that level.

If Warner Music does make an offer for EMI, any deal between the two is expected to come under scrutiny from competition regulators. As a result of this, any bid from Warner is expected to have to be well above 265p a share.