EMI Group plc rejected a $4.1 billion non-binding takeover offer from Warner Music Group, saying the uncertainty of approval from European regulators was "not in the best interest of EMI shareholders."
The London-based record label said its board concluded that it did not want to "entertain a pre-conditional offer which would entail prolonged regulatory uncertainty and unacceptable operational risk at a critical time for the company." It added that Warner's bid was insufficient.
Warner and EMI began talks about a potential merger more than six years ago, but put a halt to talks last summer after European regulators gave close scrutiny to a merger between the music divisions of Sony Corp. and Berlelsmann AG.
Shares in Warner closed down 3 percent, or 55 cents Friday to $19.03. The New York-based record company has its West Coast headquarters in Burbank.
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