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Bronfman sees the EC’s review of the Sony BMG merger as an opportunity to reshape the music business on a worldwide basis.
WMG TO APPEAL DIRECTLY TO EMI SHAREHOLDERS IN TAKEOVER BID
Bronfman Shifts Strategy, Shocked by Nicoli’s Decision to Remove DRM
 Warner Music Group’s likely next move in its ongoing quest to acquire EMI will be to shift its strategy and appeal directly to EMI shareholders, according to a story in The Times of London.

The goal of this new strategy would be to undermine the opposition of EMI’s management to being taken over by WMG. Last month, the EMI board rejected the Bunny’s latest proposal, a “preconditional offer” of 260p per share, or $4.1 billion, describing the bid as "inadequate."

Edgar Bronfman Jr. and his private equity posse are eager to complete the pursuit of the British company because they see the European Commission’s review of the Sony BMG merger as an opportunity to reshape the music business on a worldwide basis, creating a Big Three strong and a strong indie sector. WMG recently managed to gain the support of international indie-label org IMPALA, whose opposition to Sony BMG had prompted the EC to reexamine the merger.

According to sources inside the company, Warner’s desire to complete the pursuit was intensified by Eric Nicoli’s announcement on April 2 that EMI would remove DRM form its digital catalog, believing that the company is “making a grave mistake.” Bronfman was reportedly astonished that EMI had made a decision with such potentially far-reaching consequences while it was a bid target.

Some of EMI’s shareholders were similarly shocked, says The Times.  Hugh Hendry, chairman of investment fund Eclectica, told the paper he was “aghast that they could get away with it… It seems like a very, very big decision in a company where shareholders such as ourselves have such a low opinion of management.”

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