Universal in hunt for EMI with new bid

By Etain Lavelle for MailOnline
Updated: 17:26 EDT, 10 November 2011

Universal, the music giant owned by Vivendi of France, is back in talks to acquire embattled music group EMI from US banking giant Citigroup.

A dispute over EMI’s pension liabilities prompted Universal to pull out of the running a few weeks ago. But it is believed to have returned in the auction’s final week with a $1.1billion (£680million) offer.

The news has raised the hackles of European independent music companies’ body Impala, which believes UK regulator the Competition Commission couldn’t pass such a merger.

Hunted: Universal is back in talks to acquire EMI, with a $1.1billion offer

‘The main problem in the music business is the strength of the duopoly (Universal and Sony) and the stifling impact that it would have on access to independent labels,’ Helen Smith, executive chair of Impala said.

Universal already controls over half of the world’s music, Smith added. Universal’s offer still falls short of the $1.7billion to $1.8billion reportedly being sought by Citi.

The New York-based bank is keen to wash its hands of EMI, which it inherited after private equity firm Terra Firma relinquished control of the music group.

Founder and financier Guy Hands lost a court case against the Wall Street institution earlier in the year.