EMI's $4.23bn bid for Warner Music rejected
Warner Music Group Corp has rejected EMI Group Plc's, offer of $4.23 billion, to buy it out. EMI's shares fell on the news. EMI made the approach on May 1 to buy each share of Warner Music, the fourth-largest music company, for $28.50 in cash. Warner said it did not wish to enter into discussions regarding EMI's proposal. The companies had also failed to merge in 2000 after regulators rejected the plan.

The music industry has been consolidating as compact disc sales fall due to piracy and other forms of entertainment, and digital music sales haven't yet made up for the fall.

EMI shares fell by as much as 13.75 pence or 4.9 per cent to 268.25 pence. Warner Music said in an e-mailed release that the board of the company had "carefully evaluated" the offer with its legal and financial advisers, and "determined that the proposal was not in the best interests of its shareholders and unanimously rejected it.
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