Terra Firma Capital Partners was granted a last minute extension of its bid for EMI by the U.K.'s Takeover Panel from yesterday until 1PM on Wednesday.
There have been growing concerns that the buyout firm is struggling to finance the takeover. Terra Firma had received acceptance from almost 85% of EMI's stockholders by late Friday. But Citigroup had refused to give its promised $4.86 Billion of the funding if Terra did not get the whopping 90% acceptance required to make the deal unconditional.
Citigroup's reluctance to waive the 90% requirement - something that lenders traditionally due in freindlier markets - and the fact that many of the shares needed to reach 90% changed had in recent heavy trading anf are thus unregistered and uncountable - leave some wondering if the deal will fall apart.
To add to the drama reports coming from Shanghai suggest that the giant telecom China Mobile Ltd will in the end buy some or all of EMI through Terra Firma and that the Chinese company is on the hunt for other major music acquisitions. A China Mobile spokesperson in Hong Kong has denied the reports.
In Monday morning trading, the UK stock market added 2.75 pence to EMI pushing it 1.1% to 252p just below the $256p per share that Terra Firma has offered.