May 9 (Reuters) - Apollo-backed Concord said on Thursday it will stick with its offer of $1.25 apiece for Hipgnosis Songs Fund, days after Blackstone outbid it for the music rights owner of artists such as Shakira and Red Hot Chili Peppers.
Shares in Hipgnosis, which also owns rights to songs by The Chainsmokers, were down 2.1% at 1.024 pounds ($1.28) in morning trade.
The $1.51 billion offer from Nashville-based Concord was its second proposal for the music rights investor as it battled Blackstone for rights to more than 65,000 songs, including tracks by Blondie and Neil Young.
Blackstone, the world's largest private equity firm, had hiked its offer to $1.30 per share or about $1.57 billion in April, above Concord's bid to win Hipgnosis's board backing for the deal.
Hipgnosis declined to comment while Blackstone did not immediately respond to Reuters' request for comment.
Concord is indirectly controlled by Alchemy Copyrights, which acquired music investor and Hipgnosis's peer Round Hill Music last year. Its publishing arm counts songwriters such as Daft Punk and Mark Ronson on its roster, according to its website.
Blackstone is a majority shareholder in Hipgnosis' investment adviser, HSM, which manages artists and songwriters for the fund and holds a call option to make a higher offer for Hipgnosis' portfolio if their advisory agreement were to be terminated.
The Blackstone proposal is independent of HSM.
Hipgnosis, founded in 2018, started a strategic review last year after a shareholder vote against the continuation of the fund led to a tumultuous period and a dispute with HSM over the call option.
Both Hipgnosis and its eponymous investment advisor were founded by music industry veteran Merck Mercuriadis, who has managed artists including Elton John and Beyonce.
($1 = 0.8010 pounds)
Reporting by Prerna Bedi in Bengaluru; Editing by Nivedita Bhattacharjee, Sherry Jacob-Phillips and Emelia Sithole-Matarise
Source: Reuters