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KKR and Warner Music eye break-up bid for EMI: report
The headquarters of Warner Music Group is pictured in Burbank, California August 5, 2008.
Credit: Reuters/Fred Prouser
LONDON |
LONDON (Reuters) - Private equity firm KKR KKR.UL and U.S. music company Warner Music Group WMG.N are in talks to launch a break-up bid for Warner's indebted British rival EMI LNDONE.UL, reported the Sunday Times.
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 ($1.82 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 could be taken over by its lender Citigroup (C.N) if it does not find 120 million pounds by June 14 to cure a covenant breach said the paper.
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.
(Reporting by Sarah Young)
($1=.6592 Pound)
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