Report: EMI May Mount Bid For BMG Music Publishing
June 26, 2006 at 10:40 AM (PT)
Speaking of BERTELSMANN's sale of BMG MUSIC PUBLISHING (see story above), THE TIMES reports that EMI is attempting to create a consortium with one or more private equity firms to mount a bid for the company, which is expected to fetch between $1.5-$2.0 billion. EMI's goal, according to THE TIMES, is to have venture capitalists contribute a majority of the money and own the controlling shares of the business, while EMI's execs would run the company. The arrangement would allow EMI to "retain the firepower" to bid separately on WARNER MUSIC MUSIC, which EMI is still pursuing despite WMG's rejection of a cash and shares bid last month (NET NEWS 5/3).
While EMI is the third largest label, it is the largest music publisher. BERTELSMANN said last week that it has received 14 expressions of interest for BMG MUSIC PUBLISHING, which is the world's third largest such company.
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