Warner hints at possible EMI bid

EMI, whose artists include Robbie Williams and the Beatles, has agreed to be bought by private equity firm Terra Firma for £3.2bn including debt.

But Warner, which had an earlier offer rejected, said that it "continues actively to consider an offer" for EMI and would make a further announcement.

Any deal would be dependent on getting regulatory approval, Warner added.

EMI TIMELINE

• 2000 - EMI, Warner first attempt merger
• 2001 - EMI ends talks with Bertelsmann's BMG
• 2003 - Reports claim EMI in talks with US private equity firm Blackstone
• 2003 - EMI loses out in auction of AOL Time Warner music arm
• 2006 - EMI bids for Warner. Warner counter bids for EMI.
• EMI rejects Permira's £2.5bn bid.
• January 2007 - EMI issues profit warning
• 14 February, 2007 - EMI issues second profit warning
• 20 February, 2007 - EMI confirms approach from Warner
• 3 March 2007 - EMI rejects Warner's £2.1bn takeover bid
• 18 April 2007 - EMI warns music revenues to fall 15%
• 4 May 2007 - EMI says it has been approached by several bidders approaches
• 21 May 2007 - EMI agrees £3.2bn deal with Terra Firma
• 11 June 2007 - Warner says it has not ruled out another bid for EMI

EMI, the world's third largest music company, has been the subject of bid speculation for the past year as its business has struggled.

The firm has seen sales decline dramatically in recent months and said last month that it had made a £260m loss in the past year.

EMI's board of directors has recommended the 265 pence a share offer from Terra Firma, but the deal must be approved by the firm's shareholders.

The deal values EMI shares at £2.4bn, and including debt, is worth £3.2bn.

EMI, one of the world's big four record companies, has suffered a downturn in its fortunes in the past 18 months.

Record sales have 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.

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