Blackstone will sweeten its offer for Hipgnosis Songs Fund by a cent to $1.31 from $1.30 as part of a revised bid that would value the firm at nearly at $1.6 billion, the Financial Times reported on Monday.

The deal will need approval from 75% of voting shareholders of Hipgnosis, that owns the music rights of artists such as Shakira and Red Hot Chili Peppers, the newspaper said, citing people familiar with the matter.

The offer would also require approval from the UK's Takeover Panel, and an announcement of the deal could come as early as Monday, the report said.

Blackstone and Hipgnosis did not immediately respond to Reuters' requests for comment.

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.

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.

(Reporting by Gursimran Kaur in Bengaluru; Editing by Mrigank Dhaniwala)