In a suprise announcement, EMI have recommended to shareholders that they should accept a cash offer from a European private equity firm, at 265 pence per share.

The offer comes from Terra Firma, and puts estimates of the major label at £3.2 billion. EMI responded by saying the offer made was "fair and reasonable", and EMI stock has surged almost 10% in value to 271 pence. EMI chairman John Gildersleeve's description of the offer as "attractive" is certainly one in the eye for EMI's long-term takeover dance-parter Warner Music Group.

The statement was made alongside EMI's  financial full-year report, which showed that the label's core divisions - EMI Music and EMI Music Publishing were both suffereing from revenue declines.