EMI Group Denies Rumors of Rival to Warner in Merger

Britain’s EMI Group moved to quash speculation on Friday that a counter-bidder could be preparing to pounce on the music group, saying it had received no new approach from any consortium.

EMI, which plans to merge with the music division of Time Warner Inc., also denied reports that shareholders had demanded the group delay a meeting on Monday to finalize its $20-billion Warner deal, amid expectations of a counter-bid.

The Financial Times reported that a consortium of three companies with new-media ambitions based in the United States, Europe and Asia had been considering an unsolicited bid and shareholders had asked that Monday’s meeting be delayed.

“EMI has not received any approach from such a consortium, and has today asked British regulatory authorities to obtain clarification of this speculation. There is currently no request from any EMI shareholder to adjourn the [meeting],” EMI said.

“The [directors of EMI] continue to recommend shareholders to vote in favor of the resolutions to be proposed,” EMI said in a statement.

Still, there is continued speculation that a last-minute counter-bid for EMI will be launched at Monday’s EMI board meeting. Reports that a counter-bidder could be preparing to launch an attack on EMI had earlier met a cool response from analysts and dealers as the group’s share price fell.

EMI shares were down 2.5% on the London Stock Exchange following a strong rally on Thursday on hopes a rival cash bid could emerge before shareholders vote on its merger with Warner Music.