Filed under: Deals, Private equity industry, Shareholders

Less than a week after declaring that July 29 would be the last deadline EMI Group PLC (LSE: EMI) shareholders would get to sell to European private equity firm Terra Firma has announced one more deadline before the offer lapses: August 1. The deal requires 90% of shareholders to succeed, a value set by backer Citigroup's(NYSE: C) Citibank, and Billboard.biz reports that Terra Firma had acquired nearly 85% by closing last Friday. The previous deadline was 28 hours before on Thursday.

The £2.5 billion (or $5.1 billion) deal for Terra Firma to buy EMI was originally announced in May, but before Warner Music Group (NYSE: WMG) dropped out, Terra Firma had obtained less than 4% of shares. That was two weeks ago and the private equity firm reported to Billboard.biz that insurance giant Allianz was one of the major holdouts by Friday, holding 96,600 shares.

Terra Firma is offering 265 pence (roughly $5.38) per share in the offer, while EMI stock closed at 256.62 pence today. Before WMG's pull-out EMI stock had risen well above 270 pence, but after that the stock fell dramatically, falling as low as 245 during daily trading (never closing there). Shareholders originally held out in the hope that WMG would make an offer as lucrative as an earlier offer by the music giant for 315 pence.

The number of shares Terra Firma had on Friday (85%) was such a higher value than a week prior (26%) and a week before that (less than 4%), that it would be surprising if the deal did not go through by Wednesday. Then again, another deadline (no matter the possibility) may still be required!

 

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