EMI anticipated to sell for as much as $4bn

Speculation is mounting that bids for EMI could reach more than $4bn (£2.4) – as more than 10 parties have been put forward as interested in the music major.

Reports in the Financial Times have stated that the company could fetch far more than its rival Warner Music which sold for $3.3bn (£2bn) earlier this year and between four and six first round offers have been put forward for the company.

Reports state that bidders have been spilt between those wanting the entire business, those interested in the publishing arm and those the recorded music arm.

Warner Music, Sony, Universal and BMG have all been put named as interested parties along with a number of the private equity companies who were interested in Warner Music Group – including Gores Group, Platinum Equity and Ron Perelman.

Were Citi able to get $4bn for the major the bank would recoup around three-quarters of the £3.4bn ($5.5bn) it lent to Guy Hands when his company Terra Firma brought EMI in 2007. Citi wrote down the loans by £2.2bn in February, leaving EMI capitalised with £300m of cash and £1.2bn of debt

Source: Music Week