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Hipgnosis shares rose 10% to 1.01 pounds ($1.25) in early trade,
their highest level since September 2022. Blackstone's fourth
and latest proposal valued Hipgnosis at $1.24 per share in cash,
higher than Concord's $1.16 a share bid.
Music rights investment firm Hipgnosis said on Monday it would
recommend a higher Blackstone bid if the world's largest private
equity firm were to table a formal offer.
Blackstone is a majority owner of Hipgnosis Songs Management (HSM),
the fund's investment adviser, which holds a call option to
purchase Hipgnosis' portfolio of songs if their investment
advisory agreement was terminated.
Hipgnosis Songs Capital (HSC), a partnership between HSM and
Blackstone, owns rights to music by Justin Bieber, Nelly Furtado
and Justin Timberlake, among others.
Hipgnosis had last week agreed to the $1.4 billion deal with
Concord.
"The Board and its advisers will continue to provide Blackstone
and its advisers access to confirmatory due diligence, to enable
Blackstone to announce a firm intention to make an offer, as
soon as possible," Hipgnosis said.
Hipgnosis Songs Fund, founded by industry veteran and former CEO
Merck Mercuriadis, launched a strategic review last year after a
shareholder revolt threw its future into doubt.
The London-listed firm has since been in dispute with HSM, which
is chaired by Mercuriadis, over the call option.
Shareholders in October had rejected the fund's proposed $440
million deal to sell 29 catalogues to HSC on valuation concerns.
($1 = 0.8076 pounds)
(Reporting by Prerna Bedi and Yadarisa Shabong in Bengaluru;
Editing by Sherry Jacob-Phillips)
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