WSJ says UMG will need to unload 50% of EMI

A “STEEP DISCOUNT” IN THE OFFING? In its latest coverage of the UMG-EMI drama, the Wall Street Journal reports that Universal’s response to EC demands for major concessions will be delayed until Thursday, “as the music giant appeared to stumble in its efforts to win support for its deal from smaller, independent rivals.” In light of the “strenuous” objections to the deal, the story continues, Barclays analyst Julien Roch predicted in a report released on Tuesday that Universal would need to sell 50% of EMI Music at a steep discount, which the bank estimated would amount to €200 million, or $246 million. Also on Tuesday, Impala said in a statement that org Co-President Patrick Zelnik’s stated support of the deal (see previous coverage) was "not the Impala position.” To which Universal countered, “We will continue to work closely with the independent music community so that, together, we can help ensure the future health of our industry." (7/18a)