EMI pulls back over a sell-off

By JON REES
Updated: 07:22 EST, 25 April 2010

EMI Music chairman Charles Allen is believed to have pulled back from suggesting sales of parts of the group in the strategic plan he has just submitted to financier Guy Hands, who runs parent company Terra Firma.

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Allen is understood to be keen to renew attempts to strike a sales and distribution pact with rivals for the company's business in the Americas.

The last attempt at such a deal, set to raise about £200m, failed.

Any future attempt would see it keep control of output and prices while letting rivals handle sales, said EMI sources.

EMI, which is home to Coldplay, Lily Allen and Katy Perry, made a pre-tax loss of £1.75bn in the year to March 2009, but an operating profit of £293m on revenue of £1.58bn.