EMI Sale Hits New Bumps, WMG May Pull Offer
Prior to last Wednesday's bid deadline, as many as 10 potential buyers were bidding for EMI, but now that number appears to be dwindling. The UK's Sunday Mail is blaming weak capital markets for causing several private equity groups to pull out. But new Warner Music Group owner Len Blavatnik, is also considering dropping his bid because, reportedly, he's frustrated with how long the process is taking.
Despite the doubters, owners Citi still seems anxious to complete a sale by the end of October.
But fewer bidders could mean a lower valuation (the bank had hopped for $3-3.5 billion) and increases the likelihood that the label group and publishing arm will be sold as separate assets.