WEMI CONCESSIONS DUE MONDAY

Warner Music Group and EMI are expected to file a joint concession plan to the European Commission Monday in hopes of getting the proposed merger of the two music giants approved, sources said. The deadline for such concessions is Tuesday (9/19).

Speculation that the deal will not go through or that other bidders for EMI will emerge (depending on the news outlet you subscribe to) lifted shares in the British company by 10%. The stock was up 53 pence after dipping Wednesday to 505 pence, its lowest level since early December, marking a decline of some 20% since the start of this month.

Sources indicate that the two companies would submit a plan that calls for the possible selling off of some of their combined units. The EC said last week that the two companies had already given undertakings to ease concerns, but sources said such concessions failed to allay the Commission's concerns (hitsdailydouble.com 9/7).

The next concessions submission follows word that the EC would block the merger, unless the companies agree to make changes in their merger proposal. Regulators are concerned about the size of the companies' marketshare in music publishing and record sales, as well as what effect the Time Warner-AOL merger would have on a planned alliance of the music interests. Also, the EC has expressed worriesthat the collective dominance of the four major labels would hinder competition.

Guessers are guessing that Bertelsmann may make an offer for EMI after Germany's largest media company said Wednesday it wanted to expand its music business.