Britain's EMI Group has rejected a £2.1-billion cash takeover proposal from Warner Music Group, saying the price was inadequate and not in the best interests of its shareholders.
The world's third-largest music company and home to Robbie Williams and Coldplay, said it held a board meeting on Friday after getting a non-binding proposal from Warner which indicated it might be prepared to make a bid at 260 pence per share.
'The board concluded that it is not in the best interests of EMI shareholders to entertain a pre-conditional offer which would entail prolonged regulatory uncertainty and unacceptable operational risk at a critical time for the company,' EMI said in a statement.
Warner, the world's fourth-largest music company and with artists including Madonna and the Red Hot Chili Peppers, approached EMI about a possible bid at the end of January despite uncertainty over whether it would win European regulatory approval.
EMI had said it would consider any bid in terms of the price offered and whether it would be approved by European regulators.
