BMG Hovers For Scraps

Russian billionaire Len Blavatnik hasn’t inked his deal to buy Warner Music Group, and Citigroup has yet to put EMI on the block, but papers on both sides of the Atlantic are already speculating over who will try to pick up the scraps.

Blavatnik is expected to be one of the major bidders for the English music company. If he’s successful, regulatory issues dictate that he’d need to hive off parts of one or even both.

IMPALA, the Brussels-based indie music companies’ organisation, has already made it clear it will oppose any deal that threatens to reduce the number of majors from four to three.

The latest word is that KKR-backed BMG Rights has already held meetings in New York to discuss how it might pick up any valuable pieces that come up for sale.

Along with Vivendi’s Universal Music Group and Sony/ATV, who also reportedly made unsuccessful bids for WMG, BMG Rights would certainly be interested should Warner-Chappell become available.

Although BMG has spent millions acquiring publishing catalogues, it still needs to bulk up its business before it can compete with the majors.

Blavatnik has just won U.S. regulatory approval for his $3.3 billion purchase of WMG, but matters would become more complicated if he also took EMI.

Citigroup would want assurance he’s already worked out what he needs to dispose off to take a clear run at the company.

The U.S. bank is said to be looking for a quick sale that could be wrapped without having to spend years bouncing around the US and European courts.