Thursday, June 29, 2006

A bid deadlock

How do you defend yourself against a buyout bid ? Make a counterbid of your own!

After getting an offer from EMI that it didn't like, Warner Music (WMG) has made an offer to buy EMI. EMI, as expected, has rejected that offer.

It will be interesting to see how this will end, as these two have been dancing around for a few years now. As long as I get a healthy premium, hopefully in an all-cash deal, for my WMG shares, I won't complain.

Update: Reports now indicate that EMI may make a new bid of $33/share. That would be more than a 100% gain over my average cost.


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