After private equity group Terra Firma extended the offer period for its $4.8 billion buyout of EMI Group to July 12, Warner Music Group (WMG) is still deciding whether to swoop in with a last minute bid. WMG has even hired veteran Wall Street banker Alan Mnuchin to help assess a bid. Mnuchin, who runs the boutique advisory firm AGM Partners, is working alongside WMG's principal advisers at Goldman Sachs and Lehman Brothers, according to the U.K.'s Telegraph.
WMG remains undecided about whether to proceed with a bid. However, Terra Firma's offer of 265 pence per share has received acceptances from only about 3.6 percent of EMI shareholders and the firm has until Saturday to amend its offer, which has been endorsed by the board of EMI. Other shareholders could be holding out to see if WMG makes a more attractive counterbid.
WMG is said by to be unlikely to secure a recommendation from the EMI board unless it offers about 300 pence per share. As previously reported, EMI executives had recommended Terra Firma's offer to shareholders because it delivers "cash now, without regulatory uncertainty." A WMG bid would likely face regulatory scrutiny from European antitrust officials who are still reconsidering allowing the Sony BMG merger.