EMI In Last Minute Talks With Universal

Last minute talks with Universal that would have the world's largest label group license EMI's vast catalog for as much as $300 million over the next 5 years have resumed in the last 24 hours according to a variety of sources. Completion of the deal could mean the shut down of virtually all of EMI's U.S. operations and hundreds of layoffs.

Wednesday is the deadline for EMI to submit numbers and a plan to lender CitiGroup showing solvency and that it has a plan to move forward. If the music company fails the test, Citi could take over in an attempt to protect its $2.5 billion position.

It is less clear if Sony is still in the bidding game and spokespersons from all parties involved refused to comment.