Private equity firm Permira has ended acquisition talks with EMI. In its press release, EMI said it "has not received an offer that fully reflects the prospects for and value of the company and which it could recommend to shareholders." The press release did not mention Permira by name, but it is widely believed the hopeful acquirer was Permira. The collapse of the bid dropped EMI shares almost 10%, their biggest decline in two years.

EMI is thought to be looking for a bid in the range of 330 pence to 350 pence per share. Shares dropped to 268 1/4 today. A source told Reuters that Permira has no plan to come back with a new offer in the near future. Bloomberg pointed out it was Permira's fifth failed bid attempt of 2006.

All eyes are still on Warner Music Group for an acquisition or, less likely, a merger. Many analysts feel a combined WMG-EMI offers the best possible cost savings and the only cost savings that merit a sale of EMI.