Citigroup EMI Bids Due Today

CITI NEVER SLEEPS: With second-round bids for EMI due today, Citigroup may receive lower offers than expected due to tight credit markets, and may be forced to break up the record label or postpone the sale until conditions improve, according to a report in Business Week. Offers for the company are expected within the $3-3.2 billion range, while splitting up the recorded music and publishing could yield $3.75 billion. Len Blavatnik’s Warner Music Group and billionaire Ron Perelman are each vying for all of London-based EMI, and may bid for the recorded music business if the parts are sold separately. Fellow deep pocketed businessman Ron Burkle has reportedly partnered with Napster co-founder Sean Parker to prepare a bid. Some of the potential buyers are lowering their offers after Citigroup disclosed additional liabilities of up to $619 million in pensions for 21,000 U.K. employees and leases the company signed for U.K. HMV Group music stores that were later shuttered. (10/5p)