Distressed music royalties fund Hipgnosis, which owns the rights to back catalogues ranging from Red Hot Chili Peppers to Neil Young, has received a rival takeover proposal from private equity firm Blackstone.
Hipgnosis, which just on Friday agreed to a US$1.4 billion/US$1.16 per share bid from Nashville-based music rights owner Concord, said it “would be minded to recommend to its shareholders should Blackstone announce a firm intention to make an offer”.
Blackstone’s proposal improves on Concord’s bid by 6p per share, implying an approximate valuation od US$1.5 billion.
The private equity firm, which has over US$1 trillion in assets under management, is already the majority owner of Hipgnosis’ investment advisor, Hipgnosis Song Management.
Until Blackstone puts a formal offer in writing, Hipgnosis’ directors recommend that shareholders continue to support Concord’s offer.