EMI shares up 8 pct on takeover approaches

LONDON, May 4 (Reuters) British music group EMI, home to Robbie Williams and Coldplay, said on Friday it had received a number of takeover approaches, after a report that private equity firm One Equity Partners had joined the list of suitors.

The news sent the group's share price up 8 percent or 18-1/4 pence to 245-3/4p by 0830 GMT.

EMI Group Plc, which rejected a 2.1 billion pound (.2 billion) bid proposal from long-time suitor Warner Music in March, declined to say how many approaches it had received or who they were from.

The statement followed a Financial Times newspaper report which said, without citing sources, that One Equity Partners had approached EMI with an offer that could value the world's third-biggest music group at more than billion.

One Equity Partners, a unit of JP Morgan Chase and Co, could not immediately be reached for comment.

''Further to recent speculation, EMI Group Plc confirms that it has received a number of preliminary indications of interest to acquire the company,'' EMI said in a statement. ''There can be no certainty that any offer will ultimately be made.'' Analysts said the offer would equate to around 260 pence per share after stripping out the group's 900 million pounds of debt.

BACK CATALOGUE Analysts at Numis noted that a deal with Warner would unlock further synergies while UBS said Warner would be better placed to offer more than private equity.

''We remind investors that EMI has received several approaches from private equity before, none of which have resulted in a transaction,'' Numis said in a note to clients.

However analysts have also pointed out that EMI appears reluctant to engage with Warner.

Last year Warner, the world's fourth-largest music company with artists such as Madonna and Red Hot Chili Peppers, offered 320 pence a share for EMI, but reduced that to 260p after EMI issued two profit warnings.

EMI rejected the latest offer in March, saying the price was inadequate and not in the interests of its shareholders.

It is also not clear whether any merger would gain regulatory approval as the deal that created Sony BMG is being examined by the European Commission.

The Commission has indefinitely suspended the deadline for its examination of the Sony-BMG deal pending further information from the companies.

Private equity would be interested in the more reliable and cash-rich publishing side of the business and they could have been influenced by EMI's comments last month that it was considering a securitisation of those assets.

EMI said the move, which would allow it to borrow against revenues from the reliable back catalogue, could be completed by the end of this financial year.

Any private equity bidder would likely want to consider a securitisation plan themselves.

EMI has issued two profit warnings this year and is trying to revive its flagging music business with a far-reaching restructuring programme.

The music industry has been damaged in recent years by Internet piracy and falling CD sales, but EMI has also suffered from a lack of big hits recently and the poor performance of new releases such as Williams's ''Rudebox'' album.

REUTERS PV VV1458