Shares of EMI went up 10 per cent today after the London music group announced that they received a preliminary takeover proposal. EMI's executive chairman, Eric Nicoli, and private equity bidders Kohlberg Kravis Roberts and Goldman Sachs, among others, have been discussing a possible bid worth of 2.5 billion pounds.

There are some unconfirmed speculations about Vivendi being a probable contender. Earlier this year a European court annulled the Sony BMG merger, and it was thought that the attempted merger of EMI with Warner Music wouldn't be favored and most likely wouldn't be approved. For the time being the deal was not pursued. As a result, EMI's share price has been held back until now.

The decision from the EU on whether consolidation will be ratifyed (sanctioned) is not expected before the summer of 2007.

MS NEWS