KEY POINTS:
Warner Music is set to pounce on its rival EMI after a potential bid was backed by Impala, the independent music body that opposed the merger of two music companies last year.
Last northern summer, Impala successfully appealed against the European Commission's clearance of the 2004 merger of the music majors Sony and BMG, a development that put the potential tie-up between EMI and Warner Music on hold.
Brussels is not due to rule on the Sony-BMG merger until March 1. Warner pre-empted the ruling with an informal approach for its troubled rival yesterday.
EMI, which has issued two profits warnings this year and seen key executives leave, is in a weak bargaining position.
It is the fourth time that Warner and EMI have entered talks in the past seven years.
A formal approach is still some weeks away, sources say.
Warner has gained support from Impala after agreeing to a series of remedies that satisfied the independent music body that a merger of the world's No 3 and No 4 music companies would not affect competition.
- INDEPENDENT
