EMI Auction Nearing End

EMI BIDS LOWER THAN EXPECTED: With all second-round bids in to Citigroup for EMI, the bank is finding it a difficult feat getting the $3.3 billion Warner Music Group garnered from Access Industries’ Len Blavatnik earlier this year, according to a report by this morning’s N.Y. Times. Of the five parties that have bid on all or parts of EMI, four are other big music companies. WMG and the Universal Music Group have both made offers for EMI’s recorded music division said to be between $1 billion and 1.3 billion. EMI’s publishing unit has drawn offers of $1.75 billion to $2 billion from both Sony/ATV and BMG Rights Management, the joint venture between private equity firm Kohlberg Kravis & Roberts and Bertelsmann. In addition, some of these companies have made offers for the entire company, but those bids are said to be lower than what Citi would get by splitting the company up. Regulatory issues could cause EMI’s recorded and publishing units to be carved up even further. (10/17a)