EMI is one of the big four record companies, with more or less 10% of the music market share. In April we started to hear about Warner wanting to buy EMI (again), in May we heard that several Private Equity firms also wanted EMI. Warner extended the offer, but Terra Firma also made an offer, and EMI accepted it - meaning that they started by then to convince its shareholders to accept the deal. Terra Nova needs 90% of the shareholders wanting to do the deal. Warner kept wanting to buy EMI, and shareholders were not really interested in Terra Nova's offer without knowing what alternatives they have... So Terra Firma raised their offer for EMI, and set'd up June 27 as the aquisition deadline. Warner said they were going to make a final offer, and EMI shareholders didn't show any interest on Terra Firma's offer. The limit date was postponed, but when Warner gave up the ride, then shareholders faced an easier decision: Terra Firma or nothing. Until friday Terra Firma had 84.94% from the 90% they need to, and a final extention was set to 1.00 pm on Wednesday. Everything would lead to the conclusion that Terra Firma is going to get the deal, but there are reports that financing for the deal could fall through due to the recent turmoil on global debt markets.
Let's see what's going to happen: wednesday is definively the final day for us to know if EMI is going to be sold to Terra Firma or not. Unfortunately I think that if they are sold those are bad news, but if they're not we have even worse news. One way or another, after the deal we'll have interesting time for the big four in the next few months.