Specifically between record seem impossible today given the concentration of the market

The British EMI, third world major of the disk, confirmed yesterday was approached to offer. Earlier, the "Financial Times" indicated on its website that the group chaired by Eric Nicoli had been contacted by two investment funds Goldman Sachs and KKR for a recovery, but that discussions were in a preliminary stage. The new made immediate pumped up first place action EMI with the London Stock Exchange, where it closed yesterday up 10.4, which values the Group 2.3 billion pounds. In its press release short aired yesterday, EMI does not mention the names of the candidates at its resumed and precise receiving an "approach preliminary" which may or may not, lead to a firm offer. According to the "Financial Times" to be published today, Permira and Apollo Management would be in the ranks. While the Reuters news agency quoted the Chinese search engine Baidu, listed on the Nasdaq, as "a suitor possible".

The KKR interest is not really a surprise: in September, EMI had allied to the US investment fund to make an offer on BMG Publishing, the Music Edition of Bertelsmann. It is, ultimately, Universal Music, a subsidiary of Vivendi, which had won the last (the transaction must still be approved by the European Commission). Especially, this event of interest occurs a few months only after the abandonment by EMI and Warner Music of their talks for a merger. Throughout the spring, the two majors, both listed (EMI in London) and Warner Music in New York have not arrived to agree about who would control the other, while they were in agreement on the principle of a reconciliation. But, on July 13, the decision of the Court of justice of Luxembourg to cancel the authorization given to the merger between Sony Music and BMG has thrown a cold, forcing EMI and Warner Music to abruptly stop their talks.

Specifically, between record seem impossible today, given the concentration of the market. The European Commission has yet to pronounce on the project between Sony Music and BMG, and Impala, the association of European producers at the origin of the decision of the European justice, hope that the operation will be prohibited. As a result, EMI can that turn towards funds, or another actor in the entertainment industry that is not present in recorded music, hope to see an offer lead. And this, in a context where funds are now responsible for a multitude of redemptions of listed companies.

Warner Music offers 320 pence

Is to agree on a price: the last tentative offer by Warner Music on EMI valued group 320 pence per share. A price that the shareholders of the British will be retained and which could, therefore, constitute a floor. In addition, after restructuring already carried out by Alain Lévy, Chairman of EMI Music, the disc and main activity of EMI division, it is not certain that many improvements can be made by the new owners at the operational level, in a very difficult environment for the disk. And this same context gives IME status very risky, as the group now focuses much of its revenues on very few artists. Thus builds on the output artists such as Robbie Williams and Norah Jones, who will have to sell millions of disks that the Group meets the objectives it has set itself for its fiscal year will be closed in March 2007. Yesterday, the S & P rating agency placed under negative surveillance note which she attributes to EMI.