Branson in queue for Virgin Records

By THIS IS MONEY
Updated:

 

Shares in EMI rallied slightly, rising 4p to 522p on reports that bidders, led by Sir Richard Branson, are queuing to buy its Virgin record label. The sale of Virgin is seen as a last-ditch attempt by EMI to salvage its £14bn merger with Time Warner's music division, which is being blocked by the European Commission.

EMI refused to comment but analysts believe it is prepared to sell Virgin for about £1bn. It paid Branson £560m for the record company in 1992. Branson has said that if the business is up for sale, he would certainly look at it.

Virgin is seen as one of the jewels in the EMI crown but analysts believe its sale would only reduce revenues at the merged group by 10%. The Commission has until 18 October to make its final ruling but is expected to decide by 11 October.

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