THE takeover contest for Boosey & Hawkes, the historic music publisher, appears set to become a three-way battle, it emerged yesterday.

Two rival suitors indicated yesterday that they were making final preparations for a bid, which would pitch them against a buyout team that has tabled an offer.

Boosey, whose chief executive is Richard Holland, put itself up for sale two years ago, and has become one of the City’s longest-running auctions. News that the end-game is near will be music to the ears of shareholders.

Yesterday HgCapital, a private equity firm, said that it had completed its due diligence of Boosey and is formulating an offer.

The announcement was followed almost immediately by a statement from Music Sales, which has been stalking Boosey for two years but had never formally declared its interest.

Although Music Sales, which owns 3.86 per cent of Boosey, said it was “considering its options”, the timing of its statement suggests the firm will not stand on the sidelines.

This month Boosey agreed to a £40.1 million management buyout, led by director John Minch. Regent Street Music, his bid vehicle, has offered 195p a share in cash. HgCapital said its offer would be at a premium to the Regent bid.

It is thought that Hg’s bid could come as early as next week, with analysts speculating that it might be prepared to pay 205p a share, valuing Boosey at £42.2 million. Shares closed up 1p at 210p, valuing Boosey at £43.2 million.