Hipgnosis Songs Fund Limited (LSE:SONG) has agreed to a $1.56 billion (£1.26 billion) takeover by US private equity giant Blackstone Inc. (NYSE:BX) in the latest twist in the battle to buy the music rights owner of artists including Beyonce and Mark Ronson. Blackstone is offering $1.30 (£1.04) a share for the company, which trumps rival suitor Concord?s $1.25 (£1) a share bid that was tabled last week. Hipgnosis?

board has recommended the offer to its shareholders, withdrawing its backing for Concord?s bid. The bidding war between Concord, which is backed by Apollo Global Management, and Blackstone, has engulfed the music rights giant of late, pushing its share price up by more than 50% since it kicked off in mid-April. Hipgnosis said it recommends the improved deal to its shareholders, urging them to take ?no further action?

with regards to last week?s offer from Concord. Any deal would need backing from investors to go ahead. Robert Naylor, Chairman of Hipgnosis, said: ?Since we started our strategic review, we have been clearly focused on looking at all the options to deliver shareholder value.

?We are delighted that, following competitive interests in acquiring Hipgnosis, our investors now have a chance to immediately realise their holding at an increased premium.? The takeover approaches come amid an increasingly strained relationship between the board of Hipgnosis and its investment adviser, Hipgnosis Songs Management (HSM). HSM threatened earlier this month to ?use all means necessary?

to defend its contractual position and interests. It follows Hipgnosis calling for HSM, which is majority-owned by Blackstone, to agree an orderly termination of their investment advisory agreement in order to help the deal pass. Qasim Abbas, Senior Managing Director of Blackstone, said: ?Our offer price, which has been unanimously recommended by the board, represents a significant premium to the unaffected share price and allows shareholders to realise immediate and attractive value for their shareholding.

?The offer is the result of extensive discussion and negotiations with the board and provides shareholders the certainty of cash today. ?Blackstone is a long-term investor with deep experience of investing across the media and entertainment sectors, including in music rights. ?The breadth of the Blackstone platform, combined with our operational expertise, will support and enhance the value of the acquired rights?.