NEW YORK (
Warner Music Group
shares are up more than 7% today following reports that it is considering making a $750 million bid for
recorded music division.
The bid could be lodged with EMI's owner, private group
, within the next few weeks, the U.K.-based
Terra Firma chief investment officer Guy Hands says he's not interested in a sale, but is likely under pressure from EMI's main creditor bank,
to make a deal.
In 2007, Hands borrowed $4.5 billion from the investment bank to keep EMI from shutting down. If Hands cannot produce enough funds to pay back his debt, EMI could be taken over by Citigroup.
Hands and Citigroup are expected to discuss negotiations sometime in the coming weeks.
Warner Music shares are up about 7.15% to around $5.70 in late afternoon trading.
-- Written by Theresa McCabe in Boston.
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