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European Conflict UMG-EMI Strikes Impala

EUROPEAN CONFLICT: Impala Co-President Patrick Zelnik’s public backing of the UMG-EMI deal in a Financial Times editorial yesterday has set off a fierce backlash within the organization. Zelnik’s support was followed less than 24 hours later by the revelation he was a potential partner with Richard Branson in the acquisition of Virgin Records, one of the divestments the European Commission is reportedly requiring from Universal to push the deal through regulatory. Zelnik, a Frenchman who once headed the very successful Virgin France label, is going up against English members Martin Mills and Helen Smith, who are reportedly still fuming after reiterating their opposition to the merger in a statement this morning. Action to come. (7/17p)

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