Terra Firma wins key support to clinch EMI

Private equity firm Terra Firma said it had surpassed a key 90 per cent level of shareholder backing for its takeover of EMI, the world's third-largest music company.

The private equity group said it had valid acceptances relating to 90.27 per cent of EMI's shares, allowing the bid to go unconditional and make its financing secure.

Terra Firma, which is offering 265 pence a share to buy the music company for £2.4 billion, said it had about 85 per cent of EMI's shares but extended a Sunday deadline until Wednesday afternoon to receive the rest.

It needed to get at least 90 per cent of the shares as a condition tied to its financing agreement for the deal with adviser Citigroup.

Under UK takeover law, once a bidder has at least 90 per cent of a company's shares it can buy the business outright.

FTSE, the index company, said EMI's listing would be deleted from the London stock market on Monday. Terra Firma, led by financier Guy Hands, agreed to buy EMI, home to artists such as Coldplay and Robbie Williams, on May 21.