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"We really try not to respond to rumors and speculation... in light of the heightened media rumors and speculation regarding EMI, I think it's prudent for us not to take any comment in that regard."
—-Edgar Bronfman Jr.

SONY SIDE UP? ROLF DENIES EMI INTEREST

SME Boss in an Acquiring Mood
Apparently, something got lost in the translation.

Reuters first reported that Sony Music chief Rolf Schmidt-Holtz had told the German paper Frankfurter Allgemaine Sonntagszeitung that the company would consider a bid for ailing British rival EMI on Sunday. The newspaper quoted Schmidt-Holtz saying: "We are in a position that allows us to seize every opportunity in the market, including EMI."

It turned out he actually meant, "I could use a good bratwurst and a stein of beer right now, yah."

Meanwhile, EMI owner Terra Firma's Guy Hands has been reportedly asking investors for 360 million pounds ($557 million) for the British music company to prevent the investment from falling into lenders' hands, claiming a 58% return on. A more immediate injection of 105 million pounds is reportedly "close," according to one source, though the situation remains on edge.

The company had previously held talks with Sony Music and Universal Music Group about either a licensing or distribution deal for its North American rights.

According to a report from Premier-Finance.com, Terra Firma needs the support of approximately 75% of its fund's 200 investors by this Friday (5/10), which is when it must present a compliance certificate to Citigroup showing EMI can meet its current obligations.

EMI investors are reportedly divided over whether to back Hands in his new bid to keep control of the company. At least one investing institution, Canada Pension Plan, is believed to oppose the idea of investing more cash.

New Executive Chairman Charles Allen has submitted a business plan that “considers the possibility of asset sales, including his Japanese business, would could fetch £200m. Allen is also is also looking at a deal that could see Warner Music distribute the company in the U.S, with an upfront payment of between £150m and £200m.

WMG chief exec Edgar Bronfman declined to comment on speculation that the U.S. music company was eyeing assets of EMI, upon announcing the company's quarterly earnings last week. Insiders claim he's taking a wait-and-see approach.

"We really try not to respond to rumors and speculation... in light of the heightened media rumors and speculation regarding EMI, I think it's prudent for us not to take any comment in that regard," he said at the time.

The head of BMG, the music publishing venture owned by Bertelsmann and KKR, told the Financial Times last week his company would not bid for EMI in the near term, even though it was seeking to replicate the success of its U.S. deal-making in the Britain.

The Vivendi-owned Universal Music Group, the world's largest, said in March it was not holding talks with Terra Firma about a deal for EMI, but continues to monitor the developments closely.

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