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EMI bids £625m for WM's unit
18/08/2003 10:43 - (SA)
London - EMI Group Plc has bid £625m for the recorded music division of Warner Music in an attempt to scupper merger negotiations between the US company and Bertelsmann AG's BMG, according to the Financial Mail on Sunday.
The newspaper did not name its source, but said EMI made the approach when talks between Warner Music, owned by AOL Time Warner Inc, and BMG over combining their recorded music divisions reached the end of an exclusivity period late last month.
While EMI believes it will thrive even if its two key rivals create a more powerful group, chairperson Eric Nicoli is keen to do a deal, and Warner is his favoured target. Joining forces would bring huge savings, the article added.
However, there are tough regulatory hurdles blocking a deal.
Three years ago, Nicoli tried to tie up with Warner Music, home to Madonna and the Red Hot Chili Peppers, but the scheme was ruled out by the European Commission's competition regulators.
- AFX
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