Billboard.com reports today that the European Commission has approved the private equity group Terra Firma's bid to takeover EMI Group PLC (LSE: EMI). The bid, valued at 2.4 billion pounds or $4.8 billion, now faces competition from a most unlikely source: EMI shareholders who hope for a counter bid from Warner Music Group (NYSE: WMG). Terra Firma's bid is 265 pence, or $5.38, while EMI's stock closed at 268.90 pence today.

According to the report, Terra Firma has only secured 3.56% of EMI stocks despite early hopes that EMI shareholders would take the approved and recommended offer by EMI officers. A year ago, WMG offered EMI 315 pence per share, or $6.40, which was rejected according to Billboard due to fears of a Commission rejection. Hopes for a renewed offer from WMG are the latest in the seven years that EMI and WMG have flirted with merging. Terra Firma's bid originally expired on June 28 before being extended to July 5. After that deadline passed, another extension until today (July 12) was announced and plans to wait until July 26 were also mentioned.

In April, EMI announced that it would sell Digital Rights Management technology-free tracks on various digital stores. Apple Inc. (NASDAQ: AAPL)'s iTunes Store became the first in May by opening the iTunes Plus store. Amazon.com (NASDAQ: AMZN) will open a similar store featuring the same tracks from EMI later in the year.

EMI stock had enjoyed a steady rise since last Wednesday, climbing to close at 271 yesterday. The stock opened at 273.23 this morning before falling over 4 pence to close 2 pence lower than yesterday.