LONDON, March 2 (UPI) -- Warner Music Group Corp. said Friday its $4.1 billion offer for struggling London competitor EMI Group PLC was rejected.
EMI said its board of directors turned down the offer during a regularly scheduled meeting Friday, saying it was unwise to consider an offer "preconditional on regulatory clearance" that would create "prolonged regulatory uncertainty and unacceptable operational risk."
The board also considered the offer "inadequate," considering EMI's standalone value, the "synergies" available from a Warner merger and the regulatory risks, EMI said.
The European Commission said Thursday it would examine the 2004 Sony Corp. and Bertelsmann merger that created Sony BMG Entertainment to determine the effect it has on record prices and the ability of small music labels to compete.
Warner said 10 days ago it made a takeover approach for EMI, noting it had the support of Britain's Independent Music Publishers and Labels Association.
In 2006, Warner, the world's No. 4 music company, and No. 3 EMI each offered about $4.6 billion to acquire the other company.
The companies had previously made at least two other attempts to merge since 2000.
