KKR and Warner Music eye EMI break-up bid -paper

LONDON, March 14 (Reuters) - Private equity firm KKR [KKR.UL] and Warner Music Group WMG.N are in talks to launch a break-up bid for Warner's indebted British rival EMI [LNDONE.UL], the Sunday Times newspaper said.

The paper said KKR is interested in acquiring the music publishing arm of EMI, which it says bankers value at around 1.2 billion pounds ($1.8 billion), while Warner Music wants EMI's recorded music division, which it says is more difficult to value.

EMI is owned by private equity group Terra Firma Capital Partners Ltd [TERA.UL] but is in dispute with its lender Citigroup (C.N), which could end up taking it over, the paper said.

The report said KKR and Warner would be unlikely to make a move for EMI until the stand-off between the company and its lender had been resolved.

KKR, Warner Music and EMI were not immediately available for comment when contacted by Reuters. ($1=.6592 pounds) (Reporting by Sarah Young; Editing by Greg Mahlich)