EMI TAKES WMG BID TO THE BANK

Sure, the Sony-BMG story has novelty, but what’s a letter of intent compared to a bank note?

According to the Financial Times, EMI has raised the money for a $1.6 to $1.7 billion cash-and-stock bid for Warner Music Group's recorded-music companies.

Banks Citigroup, Royal Bank of Scotland, Goldman Sachs and UBS Warburg have reportedly agreed to provide up to $1 billion, representing the cash component of EMI's offer. The rest would be made up of around $800 million in shares of the combined EMI/WMG, which would represent up to 25% ownership.

Merger talks between Time Warner and EMI, ongoing for weeks at this point, have been "intense and constructive," according to the FT, leading sources to speculate that a deal could be completed within three weeks, despite certain major issues remaining unresolved.

EMI Group topper Eric Nicoli and Time Warner Entertainment chief Jeff Bewkes are scheduled to discuss EMI's offer by the end of the week, the FT said.

The paper also said Time Warner continues to negotiate with an investment group including Edgar Bronfman, Jr., Haim Saban and private equity firm Thomas H. Lee Partners. The group is said to be interested in acquiring publishing arm Warner/Chappell as well as the recorded-music unit.