Warner Music is examining whether it can mount a counter-bid for EMI, valuing the British music company at up to 280p a share, slightly ahead of Terra Firma’s 265p-a-share offer, which was made on Monday. The American music group behind Madonna and Linkin Park is studying EMI’s books and is expected to take several days to evaluate whether it can come up with a higher bid. It is not understood to be deterred by the break-up fee that EMI has promised to pay Terra Firma. In theory, Warner Music can afford to bid more because it has considerable synergies available from combining its recorded music business with EMI’s, but Terra Firma’s offer has come at a higher level than it expected, which means that it will have to pay more than originally hoped. (Dan Sabbagh)

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