Warner Sweetens EMI Bid

Warner Music Group will offer EMI Group a sweetener of up to Gbp100 million if its latest bid for the troubled British music group is blocked by regulators, according to a report in The Sunday Times.

The report said the size of the payment reflects the confidence of Edgar Bronfman, Warner's chairman, that a Gbp4.6 billion merger with EMI will now be approved by competition regulators. According to The Sunday Times he is prepared to offer investors a financial inducement to weaken EMI's argument that they should accept a lower offer from private equity.

The report claim sources at the European Commission believe a Warner/EMI deal has a good chance of going through.