The auction is over and Terra Firma declared the winner of EMI Group (5/22/07 RBR #100). But that may not be the last word. The New York Post reports that former EMI CEO Jim Fifield and the Corvus Capital private equity firm were preparing a new bid to top the 4.7 billion offered by Terra Firma – and top it substantially, to around five billion bucks. Just why Corvus waited until now to enter the bidding is not clear, since it could easily have joined the months-long auction process that produced five serious bids. Nevertheless, the EMI board will have to take a serious look at the new bid.
Meanwhile, there are rumors that Warner Music Group may yet come back with a higher bid after losing to Terra Firma.