Universal-BMG Music Publishing Deal Revamped To Make EU Happy

VIVENDI's UNIVERSAL MUSIC GROUP will restructure its deal to buy BMG MUSIC PUBLISHING to satisfy EUROPEAN UNION regulators, reports REUTERS. The original deal contained a provision known colloquially as the "hell or high--water clause" that guaranteed payment regardless of whether the deal gets approved by regulators, but the EU termed the provision unacceptable. The move is unlikely to torpedo the deal but means that BERTELSMANN will have to hold onto BMG MUSIC PUBLISHING until the $2.07 billion deal is approved and closed.

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