U.S. News

EMI in licensing talks to raise 400 mln stg-report


LONDON, March 21 (Reuters) - British music company EMI is in talks to allow rival labels to manage its back catalogue in order to raise funds and prevent a takeover from its lender, reported the Sunday Times. 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 catalogue 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) Keywords: EMI/SALE (rosalba.obrien@thomsonreuters.com; +44 20 7542 7717; Reuters Messaging: rosalba.obrien@thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.