GRAINGE WARFARE: The Impala leadership continues to erode as four of Europe’s largest indie labels and distributors, including the U.K.’s Domino Records, France’s Naïve, London-based Ministry of Sound and Brussels-headquartered PIAS, revealed that they are now backing UMG’s acquisition of EMI, as did veteran exec Daniel Miller, who sold his Mute label to EMI and is now angling to possibly reacquire it. The report appeared in today’s Financial Times here, which earlier this week published org Co-President Patrick Zelnik’s editorial announcing a break with his colleagues and support of the merger. It was later revealed Zelnik was part of a group headed by Richard Branson seeking to buy Virgin as one of UMG’s potential divestitures to win EC regulatory approval. Beggars Banquet head Martin Mills remains opposed to the deal, though he has become increasingly isolated from his peers. Domino’s Laurence Bell called the concessions “impressive… This seems a genuine move.” PIAS’ Kenny Gates praised UMG boss Lucian Grainge’s outreach. “He has shown an openness to dialogue with the independent community that has never happened before.” Both have acknowledged interest in acquiring any offered properties. Ministry of Sound’s James Palumbo, while insisting he was not a buyer, praised Grainge as the talented “tough old bastard” the industry needed. The record industry is a disaster and EMI’s been a double disaster. At least Lucian, whatever you think of him and whatever the detail, has got the balls to do something about that.” (7/20p)