The non-public fairness titan Blackstone is that this weekend drawing up plans for a £1.2bn takeover bid for the proprietor of songs carried out by Blondie, the Kaiser Chiefs and the Red Hot Chili Peppers.

Sky News can solely reveal that Blackstone has already tabled a number of provides to purchase Hipgnosis Songs Fund (HSF), the London-listed music rights funding firm.

The first was price 82p-a-share, insiders mentioned, whereas one other was pitched at 88p and the latest was price marginally lower than a 93.2p-a-share bid for HSF unveiled on Thursday from Concord Chorus, a music and theatrical rights firm.

Sources mentioned that Blackstone, which is being suggested by funding bankers at Jefferies, was now contemplating making the next supply for HSF, which trades on the London Stock Exchange below the ticker SONG.

One added that Blackstone had been "surprised" by the announcement this week that SONG's board had beneficial the bid from Concord Chorus - which is backed by Apollo Global Management - given its personal ongoing conversations about a proposal.

The particular person additionally questioned HSF's resolution to advocate a proposal "at the start of a bidding war, without attempting to extract greater value for shareholders".

A supply near HSF disputed that characterisation.

A takeover of the corporate would crystallise worth for Hipgnosis shareholders, who noticed the shares droop to a document low in March of about 56p within the wake of a discount within the worth of its portfolio and a suspension of dividend funds.

HSF's troubles have been performed out for months within the public enviornment, culminating final October in a call by shareholders to reject its board's purpose of securing their backing for its continuation.

The firm has been mired in bitter recriminations and authorized arguments over its efficiency and governance.

A assessment performed by Shot Tower Capital, a specialist adviser, concluded in March that SONG's property had been price a fifth lower than Hipgnosis Song Management (HSM), its funding adviser, had reported final September.

Blackstone is already deeply immersed in HSF's future as a result of it owns a 51% stake in HSM, which has a contract to handle the SONG property.

If HSM agreed to terminate the contract between them, it might launch as much as $25m for HSF though analysts say it's unclear why HSM would willingly forego any money it believes is owed to it.

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One of the obstacles dealing with Blackstone in any new supply lies in the truth that the SONG board has acquired irrevocable acceptances of the Concord Chorus bid from over 23% of shareholders.

Those solely fall away within the occasion {that a} rival bidder tables a proposal price at the least 10% extra - on this case over 102p-a-share.

However, HSM additionally has a name choice in its administration settlement with HSF which permits it to amass the portfolio of music property even when Concord Chorus is profitable, on the identical value it pays.

The name choice is known to evaporate if the administration contract is terminated for trigger.

The authorized disputes involving the businesses, which insiders have left the state of affairs finely balanced, with a doable compromise settlement between them additionally being floated by buyers.

A supply near Blackstone mentioned it was very assured in its contractual place.

Artists whose catalogues are owned by the listed firm additionally embody Neil Young and Mark Ronson.

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The the rest of HSM is owned by Merck Mercuriadis, a former supervisor of Beyonce and Sir Elton John, who launched Hipgnosis in 2018 with the goal of turning music royalties right into a mainstream asset class.

He struck a $1bn deal three years later for Blackstone to offer firepower for getting music rights and managing catalogues.

Since then, a few of the world's most distinguished financiers, together with the likes of Apollo and KKR, have developed an identical urge for food to purchase into music property.

In February, Mr Mercuriadis moved from turning into CEO of HSM to the chairman's function, with Ben Katovsky taking on as CEO.

Sources emphasised on Saturday that Blackstone's curiosity in buying HSF was on a standalone foundation and was unbiased of Mr Mercuriadis.

That stance is prone to elevate questions in regards to the buyout large's ongoing relationship with the Hipgnosis founder.

Blackstone is likely one of the world's strongest buyers, with a whole bunch of billions of {dollars} of 'dry powder' out there for funding.

When its alliance with Mr Mercuriadis was unveiled two-and-a-half years in the past, Qasim Abbas, a senior managing director in Blackstone's tactical alternatives group, mentioned: "This partnership underscores the long-term, sustainable value we see in creative content across the wider entertainment industry.

"The music business has been on the forefront of the fast-growing streaming economic system and is unlocking new methods of consuming content material."

Shares in HSF closed on Friday at 91.9p, giving it a market capitalisation of simply over £1.1bn and marginally under the extent of the beneficial supply from Concord Chorus.

On Saturday, Blackstone and HSF each declined to remark.