U.S.-based Warner Music Group confirmed on Thursday that it had approached French online music specialist Believe, with a view to initiating discussions on a possible merger.

In a press release, WMG indicates that its offer could value Believe at a minimum of 17 euros per share, including dividend coupons, an amount it says could be paid entirely in cash.

The New York-based group, whose catalog includes works by Ed Sheeran, Madonna and the Red Hot Chili Peppers, specifies that its expression of interest is "exploratory, preliminary and non-binding".

The major explains that it has requested access to a limited list of key information as part of its due diligence, with a view to potentially submitting a formal offer.

WMG also notes that the consortium of investors led by CEO Denis Ladegaillerie, which recently launched an offer at 15 euros per share, has decided to forego, among other things, the provision of a fairness opinion by an independent expert, a choice it considers contrary to French stock market regulations.

At around 9:50 a.m., Believe shares were up almost 5%, bringing their gains since the start of the year to over 54%.

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