Blackstone confirms possible $1.5bn offer for Hipgnosis

(Sharecast News) - The saga at Hipgnosis Songs Fund took a new twist on Monday when private equity outfit Blackstone made a potential $1.5bn offer to buy the troubled music rights investor, setting up a bidding war with Concord Chorus. Hipgnosis on Monday said it would recommend a higher Blackstone bid if it tabled a formal offer. The investment company's fourth and latest proposal valued Hipgnosis at $1.24 per share in cash.

Last week Hipgnosis - which holds the rights to music by Shakira and the Red Hot Chilli Peppers, among others, in its catalogue - agreed to a $1.4bn with Concord Chorus, valuing it at $1.16 per share in cash.

"The Board and its advisers will continue to provide Blackstone and its advisers access to confirmatory due diligence, to enable Blackstone to announce a firm intention to make an offer, as soon as possible," Hipgnosis said.

Reporting by Frank Prenesti for Sharecast.com