THE board of music giant Hipgnosis has said it would be "minded" to switch horses in a takeover battle should a firm offer from US private equity giant Blackstone arrive.

Last week the board received and recommended a £1.1bn offer from US firm Concord Music.

However, the weekend saw Blackstone muscle in on the deal with a £1.2bn offer, the latest in a series of bids.

"The Board, having reviewed the Proposal with its financial adviser, Singer Capital Markets, has indicated to Blackstone that the Proposal is at a value that it would be minded to recommend to its shareholders should Blackstone announce a firm intention to make an offer," a statement to markets read yesterday.

Concord had valued Hipgnosis Songs Fund (HSF) at $1.4bn (£1.1bn) in its bid last week, but Blackstone floated an offer seven per cent higher.

Blackstone is the majority owner of the trust's investment adviser Hipgnosis Song Management (HSM), and had made four offers behind the scenes to Hipgnosis, with the most recent one being the highest.

Yesterday, Sky News' Mark Kleinman reported that BMG, which is owned by German media giant Bertelsmann, has also expressed interest in HSF, albeit with a reportedly much lower proposal.

(c) 2024 City A.M., source Newspaper