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Last Updated: Wednesday, 1 August 2007, 13:21 GMT 14:21 UK
Terra Firma wins in bid for EMI
EMI artist Joss Stone
Warner has reserved the right to make another bid for EMI
Private equity group Terra Firma has succeeded in its bid to buy music firm EMI - securing just more than the 90% of shareholder approval it needed.

By the Wednesday deadline, 90.3% of EMI investors had agreed to the 2.4bn takeover offer by the UK company, headed by buyout specialist Guy Hands.

Above the 90% level, Terra Firma can forcibly buy the remaining EMI shares.

EMI's artists include Joss Stone, Lily Allen, Coldplay, Robbie Williams and the Chemical Brothers.

The 265p-per-share offer for values EMI's issued share capital at 2.4bn, and the company's value including debt at 3.2bn.

EMI's shares climbed 3.8% to 263.75 pence on the news.

The firm will stop trading on the stock market on 6 August.

Rival bid

The bid had been repeatedly extended, but eventually shareholders were given until 1300 BST on Wednesday to decide.

EMI had also attracted interest from Warner Music, which had a bid rejected earlier this year.

The board of EMI first agreed to be bought by Terra Firma on 21 May.

One of the world's big four record companies, EMI has seen sales decline dramatically over the past year.

In May, it said that it had made a 260m loss in its latest financial year.

Like all record companies, it has been hit by the trend for more digital downloading of music, while a number of high-profile album releases have badly disappointed.

EMI announced a radical restructuring plan earlier this year, resulting in the loss of hundreds of jobs in both Europe and the US.


SEE ALSO
EMI bidder extends offer deadline
20 Jul 07 |  Business
Warner Music opts out of EMI race
18 Jul 07 |  Business
Warner hints at possible EMI bid
11 Jun 07 |  Business
Could EMI become No 1 bid target?
22 May 07 |  Business
Music giant EMI agrees takeover
21 May 07 |  Business
EMI 'opens its books to suitors'
18 May 07 |  Business

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