Sony bid for WMG was higher

THAT DOESN’T ADD UP: Warner Music passed on a higher offer from Sony, Guggenheim Partners and Ron Perelman, when it accepted Len Blavatnik’s $8.25-a-share bid, people with knowledge of auction told Bloomberg. Sony/Guggenheim/Perelman was willing to pay $8.50 a share, or 3% more than the $1.3 billion offered by Blavatnik’s Access Industries. But Sony’s offer was contingent on the approval of its partners and board, one source pointed out. In a regulatory filing Friday, WMG detailed the process that led to the May 6 agreement with Blavatnik. Warner will be required to pay Access Industries $56 million if the agreement is terminated under certain conditions. Blavatnik could be required to pay a reverse termination fee of as much as $140 million if the deal falls apart because of a willful breach on his part. WMG has been sued by a shareholder who claims the Blavatnik bid undervalues the company. (5/23a)