Anonymous sources have reported to the press that KKR & Co is in talks with Warner Music Group to launch a break-up-bid for EMI Group LTD, but the KKR will not make a final bid on EMI until it resolves its financial issues with creditor Citigroup (NYSE: C).
KKR is hoping to acquire EMI’s music public division while Warner is seeking the company’s music unit. The firms have yet to make contact with EMI to begin discussions on a bid, and do not intend to until EMI resolves its financial issues with Citigroup.
Citigroup is facing a lawsuit by Terra Firma Capital Partners over the sale of EMI Group LTD for allegedly hiding conflicts of interest on the deal. Currently the trial is pending a motion by a Manhattan-based Federal Judge to determine if the case should be moved to the United Kingdom.
Some believe EMI will be put up for sale during the middle of the year.
