A last minute extension has been given by the Takeover Panel for the bid made by private equity group, Terra Firma, for struggling major label EMI.

The previous deadline - yesterday afternoon - has been extended to 1pm on Wednesday. At present. the group only has 85% acceptances for its bid, when 90% are needed for it to be successful. Without this remaining 5%, backing from banking giant CitiGroup is less than guaranteed. Considering CitiGroup will be putting $2 billion towards the deal, this is serious stuff.

CitiGroup have also refused to confirm whether it will drop the 90% requirement. Considering Terra Firma is a long-standing client of the banking giant, this also shows just how precarious the situation could become. Insiders say that CitiGroup has reservations about being able to sell on EMI's enormous debts.