Warners/Access Pulls Out Of EMI Auction

Len Blavatnik, whose Access Industries bought Warner Music Group earlier this year, has pulled his $1.5 billion bid for the recorded music division of EMI, according to The Financial Times. Vivendi Universal reportedly dropped out last week leaving seller Citigroup hoping that both moves were just high stakes negotiating ploys.

Publishing Sale Update

Negotiations for EMI's profitable publishing division appear to be going better with a joint venture between Bertelsmann and Kohlberg Kravis Roberts making an $2 billion offer. A final financing package involving equity funds is rumored to be the only obstacle to closing that sale.

What's Next?

Insiders don't rule out Blavatnik returning to the table, as he did after a similar threat three weeks ago. Citi is also said to be considering a delay in the sale in hopes that an improved economy could bring a higher price.