Hipgnosis Songs Fund has said that it will consider a takeover offer from Blackstone, after the firm received a proposal from the American investment management firm for around $1.5bn (£1.2bn).

The announcement comes after Hipgnosis agreed to a takeover bid from Concord, a US-based rival, for £1.1bn, last week.

As part of the deal with Concord, the firm said that the acquisition represented "an attractive opportunity" for shareholders, with a 32% premium on the closing share price.

The British music royalties investment fund, which gives investors the opportunity to make money from the royalties of songs by acts such as Beyonce and Neil Young, has recently had issues in regard to its structure and leadership.

In a statement, Hipgnosis said that "having reviewed the proposal with its financial adviser, Singer Capital Markets, has indicated to Blackstone that the proposal is at a value that would be minded to recommend to its shareholders", should Blackstone announce a firm intention to make an offer.

The firm added that there can be no certainty that a firm offer will be made by Blackstone, and therefore shareholders are advised to take no action at this time.

According to Reuters, shares at Hipgnosis increased by 10% in £1.01 in the early trade, which is its highest level since September 2022.

Investment director at AJ Bell, Russ Mould, said: "In some respects, investors in music rights investor Hipgnosis Songs Fund will be keen to hear the final note in a stock market listing which has been more soap opera than Glyndebourne.

"However, while news of a potential counteroffer from Blackstone to rival the $1.4bn (£1.1bn) takeover bid from Concord Chorus announced last week may prolong matters, it could also mean a better financial outcome for all parties."

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