New York – Private equity billionaire brothers Tom and Alec
Gores are considering placing a higher bid for major record label Warner Music
Group (NYSE: WMG), which last week agreed to a $3.3 billion offer from billionaire Len
Blavatnik’s Access Industries, Bloomberg reported, citing a person with
knowledge of the situation. The Gores are reportedly considering a bid of $8.35 to $8.50 a
share, while Blavatnik’s bid was $8.25 per share.
Warner is entitled to
consider higher offers for another 30 to 60 days, Bloomberg’s source said, with
such bids likely to be dependent on the company’s earnings, due tomorrow, and
the terms of any "break-up fee" promised to Blavatnik.
brothers are looking to partner with major labels Sony Music and Universal
Music in their bid, according to Bloomberg’s source.
(DMW previous coverage)