EMI, Universal Deal Moves Forward
Citigroup's sale of EMI's recorded music and publishing divisions is moving forward this week, as Universal Music Group formally filed for approval of the deal with European Union regulators. An initial deadline of March 23 has been set for a ruling from the EU regulators. A statement from UMG simply says, "Universal Music Group confirms that it has submitted its filing to the European Commission for the acquisition of EMI's recorded music business. We will work closely with the Commission and remain confident of securing clearance."

Meanwhile, independent label coalition Impala has released its own statement, urging EU regulators to block the UMG-EMI sale. On the organization's webstite, Impala Executive Chair Helen Smith said, "The clock has finally started ticking in Europe. Ultimately we expect this to lead to an outright rejection of both Uni/EMI and Sony/EMI mergers. Keeping the online market as open as possible is essential for competition and for responding to piracy, as well as other market problems. Turning music into a two-horse race would hamper the natural development of the market and increase prices. No level of divestments or behavioural undertakings would prevent that from happening."

Impala added that "it will continue to co-operate fully with the regulators on both sides of the Atlantic, to make it clear why the deals would be the worst possible outcome for competition, artists and consumers, as well as for the development of a thriving and diverse online market."

Meanwhile, the New York Post reports that the interest rate on Sony's financing deal for EMI Music Publishing has dropped. Sources tell the paper that "the anticipated interest rate on the bonds, expected just last November to be about 12 percent, will come in at roughly 5.5 percent." The offering, which closed Friday, was reportedly so in demand that it attracted up to $3 billion in offers. One source said the high interest is due to the scarcity of such transactions recently.