NEW YORK (CelebrityAccess MediaWire) — Tom and Alec Gores are reportedly weighing revising their bid in an effort to challenge Warner's agreed to bid of $3.3bn from billionaire investor Len Blavatnik.
According to Bloomberg, a source close to the matter has revealed that the Gores brothers may raise their offer to $8.35 to $8.50 a share. Earlier today, Warner announced that they have agreed to a bid of $8.25 a share from Blavatnik.
The actual size of the revised Gores bid will be based on any break-up fees that Warner strikes with Blavatnik and if on the company's earnings estimate, which is set to be released on May 10th, the unnamed source told Bloomberg. The Gores are also reportedly talking to Sony Music and Vivendi's Universal Music about a partnership in the bid.
Blavatnik's $8.25 per share bid was a 75% premium over Warner's Jan. 20th $4.72 close, the day before the New York Times reported that the label group had retained Goldman Sachs to oversee the sale of the company.
Tom and Alec Gores, both private-equity billionaires, are brothers to Paradigm Talent's Sam Gores. – CelebrityAccess Staff Writers