Citigroup asks for first-round bids for EMI

Potential buyers for music giant EMI have been asked by Citigroup - which took control from Guy Hands earlier this year - to put in their first-round bids by early August. It is thought the sale could generate £3 billion.

EMI is behind acts such as Robbie Williams, Coldplay and Lily Allen.

Bidders are expected to include Len Blavatnik, the businessman who bought Warner Music this year, Universal Music, Sony, and BMG, the private equity-backed music publisher.

The boss of BMG’s parent company, German media group Bertelsmann, confirmed that it may place a bid for EMI, but does not expect to be successful in acquiring a part of or all of the UK-based music group, it was reported.

Bertelsmann chief Hartmut Ostrowski told the Financial Times that he thinks the sale will attract more interest than the recent sale of Warner Music did - in which BMG was outbid.

If a bidding war broke out for EMI, Mr Ostrowski may choose to hone in BMG’s efforts on smaller acquisitions. Purchases of medium-sized rivals would be pursed instead.

It has been speculated that Warner Music, tipped to be a front-runner in the race to buy EMI, might not have the funds available for the purchase due to its substantial debts. A source close to the situation said that Warner would be able to cut enough costs in a tie-up with EMI that the deal would be viable.

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