WEMI ON-AGAIN?

WMG suggested it would place a new bid for the London-based major when it confirmed it "continues actively to consider an offer for EMI Group," in a statement issued yesterday.

Stock in EMI closed down 2 pence yesterday to 271 pence.

Any such offer "would be pre-conditional on appropriate anti-trust clearances being obtained (or the pre-conditions waived) but not subject to any other precondition."

The statement is WMG's first public comment on EMI since the latter accepted a bid from Guy Hands’ European private equity firm Terra Firma on May 21 worth 265 pence per share, valuing the company at £3.2 billion ($6.3 billion), with an issued share capital of about £2.4 billion ($4.7 billion).

WMG would probably have to raise its bid to 285 pence-290 pence ($2.85-$2.90) per share to accommodate for the delay and risk anti-trust scrutiny would bring.

Of course, WMG admitted yesterday that its announcement "does not amount to a firm intention to make an offer or preconditional offer and accordingly there can be no certainty that any offer or pre-conditional offer will be made." It added, "A further announcement will be made in due course."

A source familiar with Warner Music's thinking said the company doesn't feel it will encounter regulatory problems given the current decline in physical music sales. Also working in WMG's favor is the prior OK for the deal secured from Impala, a trade organization representing independent record labels in Europe.

Another insider insisted WMG would rather bid against Terra Firma than try to buy EMI's recorded music business from the private equity firm later.

Terra Firma has set June 27 as the date to begin soliciting EMI shareholders for its offer. WMG would likely submit a new offer before that date, according to sources.