Citi Ready To Dump EMI

U.S. bank Citigroup is close to completing the offering papers for EMI, according to multiple media reports.

Citi, which seized control of the only remaining UK major music company when former owner Guy Hands defaulted on nearly $5 billion worth of loans, will reportedly set a “low-ball” price tag of $2.5 billion.

“It’s operation dump EMI, and yes it’s getting stepped up,” one unnamed source told Digital Music News.

According to The Wrap, Citigroup sees EMI as nothing more than a soiled asset steeped in debt. But it also reckons the price tag will end up closer to the $3.3 billion that Russian-born industrialist Len Blavatnik paid for Warner Music Group.

“Lots of folks are interested,” said one senior bank insider. “We’ve been letting the troops line up.”

Many of the troops are expected to be the same ones that lined up for the WMG auction, including Blavatnick.

It’s not clear if Citi will entertain offers that divide its publishing division away from its recorded music group, but regulatory concerns force potential purchasers to jettison some assets.