Add BMG

SCENARIOS: Masuch said that BMG would benefit from EMI’s infrastructure in some markets where it is under-represented and would retain EMI staff with strong artist relationships. He hinted at further job losses at EMI, however, adding that it would outsource much marketing and distribution to independent specialists. But BMG is expected to face competition in an auction that could start in October if Universal’s bid is approved in September. One person close to the situation said interest from music industry members and private equity groups was “robust.” (8/31a)