Competing offers are being reviewed for EMI- now set to be sold as two separate businesses.
The chances of selling EMI as a whole were hurt by the tightening of credit markets in recent weeks, which have prompted banks to stiffen lending terms, thereby making deals more expensive.
The highest bidders? BMG Music and Sony/ATV hold the highest bids for EMI Publishing, while Universal and Warner Music Groups are said to be vying for EMI Records.
Universal Music Group is currently the front runner for EMI’s recorded music division, which includes Capitol and Virgin Records.
However, WMG Chairman Edgar Bronfman Jr. has had his eye on EMI for quite sometime. Missing out on the chance to buy it now could possibly end in his departure from the company. His hopes conflict with those of owner Blavatnik (Access Industries). He has privately expressed his reluctance to bid on EMI so soon after buying Warner Music themselves back in May.
EMI, whose artist roster includes the Beastie Boys, the Beatles and Keith Urban, is seen as one of the last remaining attractive assets in the music industry.
Citigroup which took control of EMI in February, is reportedly looking for $4 billion for the EMI companies. They are expected to make a decision by the end of next week.
LA Times on the Matter
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