UK - Terra Firma extends deadline for EMI shareholder acceptance

Terra Firma has extended the deadline for acceptance of its £2.4bn bid for record company EMI for the second time. Shareholders now have until 19 July to approve the recommended bid. It is anticipated that Warner Music, the rival music company, may step in alongside a private equity group with a breakup plan that would derail Terra Firma's take-private deal. Warner would face competition probing should it acquire EMI in its entirety so it would need a buyout group to take on the publishing business while it would retain the recorded music division. Any offer by Warner would need to substantially exceed Terra Firma's 265p offer due to the uncertainty posed by competition authority involvement.