EMI in chartering talks to lift $601 million

LONDON Sun Mar 21, 2010 10:23am EDT Related News EMI in licensing talks to raise 400 mln stg-reportSun, Mar 21 2010EMI suitors circle ahead of mid-June plan deadlineTue, Mar 16 2010UPDATE 1-Warner Music, KKR/Bertelsmann mull EMI bid -sourcesMon, Mar 15 2010KKR and Warner Music eye break-up bid for EMI: reportSun, Mar 14 2010KKR and Warner Music eye EMI break-up bid -paperSun, Mar 14 2010

LONDON (Reuters) - British music company EMI is in talks to allow rival labels to manage its back catalog in order to raise funds and prevent a takeover from its lender, reported the Sunday Times.

Deals

EMI, which is owned by Guy Hands" private equity group Terra Firma, is trying to put in place a new business plan as it faces a covenant shortfall on its 2.6 billion pounds ($3.95 billion) debt.

The group is offering other labels the chance to manage its North American catalog business for a five-year period, which Terra Firma thinks could raise 400 million pounds, enough to stave off a looming takeover by lender Citigroup, the newspaper said.

EMI declined to comment.

($1=.6580 Pound)

(Reporting by Rosalba O"Brien; Editing by Hans Peters)

Deals