Weil Gotshal & Manges’ London arm has landed a second high-profile bid for Terra Firma – advising the private equity house on its £3.2bn takeover of EMI.
City corporate partners Marco Compagnoni and Ian Hamilton are advising the sponsor on the bid, which was agreed by EMI’s board on Monday (21 May), with banking partner Richard Ginsburg handling debt issues.
The instruction comes just a month after Weil Gotshal advised the private equity house on its joint bid for Alliance Boots for more than £10bn.
Unlike the Alliance Boots bid - which ultimately went to Clifford Chance client Kohlberg Kravis Roberts & Co - the recommended EMI offer looks likely to deliver a successful deal for Weil Gotshal.
Compagnoni, who had previously advised Terra Firma while at Lovells, commented: “We’re delighted to have been able to act for on this important transaction so soon after the Alliance Boots deal.”
EMI, meanwhile, has turned to regular adviser Freshfields Bruckhaus Deringer, with the City giant fielding a team under corporate partner Mark Rawlinson.
Rawlinson has acted for EMI since 1997 and advised on its first failed merger attempt with rival Warner Music in 1999. The two companies have since made several attempts to merge, with Warner making a failed offer for its rival earlier this year.
Cleary Gottlieb Steen & Hamilton is advising Citgroup as arranger of the financing for Terra Firma's offer, with the US firm's City-based team including finance partner Andrew Shutter, corporate partner Simon Jay and tax partner Nik Mehta.
Rawlinson told Legal Week: “I have nearly done more transactions with EMI than with any other client. I have known some of the team there for a long time so I hope they are successful this time.”
The deal is being watched closely at a time when a number of private equity bidders are sizing up acquisitions in the rapidly-evolving media sector.
Warner Music is still carrying out due diligence on EMI and could still come back with a higher bid. Herbert Smith corporate partner James Palmer is advising Warner.
