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Warner's Future Questioned by Investors

Shares in Warner fell to a low Monday ” more than 60 percent below their peak for the year as the last quoted recorded music company became the focus for investors’ bearishness about the ’s prospects.

Last month’s decision by Warner, which is to report third-quarter earnings , to drop its seven-year pursuit of EMI has raised questions about its prospects in the absence of a merger, which could have provided cost-saving opportunities and built a stronger rival to the larger and Sony . Its shares, which peaked at $27.24 last year, were trading at $10.67, 3 per cent, on Monday, after analysts at Citigroup lowered their price target from $19 to $10 per share.

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