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EMI GROUP plc
The Board of EMI Group plc (EMI) provides an update on its position regarding
its proposal to acquire Warner Music Group Corp. (Warner Music) following the
decision of the European Court of First Instance to annul the European
Commission's authorisation of the SonyBMG joint venture.
As previously announced, since 1 May 2006, EMI has made two proposals to
acquire Warner Music and Warner Music has made two alternative proposals to
acquire EMI. When the Board of EMI put forward its proposals to acquire Warner
Music it believed, and continues to believe, that there are good arguments for
regulatory approval of a combination.
EMI's most recent proposal, dated 23 June 2006, was to acquire all of the
outstanding shares of Warner Music for US$31 per share in cash. Whilst the
Board of EMI believed that an offer at this level represented full and fair
value for Warner Music, the Board of Warner Music rejected it.
Against this background, the Board of EMI has decided not to pursue a
combination with Warner Music for the time being. The Board will review this
position in the light of future developments.
EMI's focus remains on driving its recorded music and music publishing
businesses forward. EMI remains confident that the global music industry has
excellent long-term prospects driven by the rapidly expanding demand for
digital music. EMI is enjoying impressive creative momentum and has exciting
release schedules for both divisions for the financial year. It is generating
very high growth in digital sales and is on track to deliver the expected cost
savings from its latest restructuring plan. EMI believes that it will, in this
financial year, again deliver a strong operating performance, achieve its
financial objectives and make good progress.
EMI Group plc
Amanda Conroy Corporate Communications +44 20 7795 7529
Susie Bell Investor Relations +44 20 7795 7971
Sonia Shah Investor Relations +44 20 7795 7625
Brunswick Group LLP
Patrick Handley +44 20 7404 5959
The Directors of EMI accept responsibility for the information contained in
this announcement. To the best of the knowledge and belief of the Directors
(who have taken all reasonable care to ensure that such is the case), the
information contained in this announcement is in accordance with the facts and
does not omit anything likely to affect the import of such information.