The ever trusty Financial Times reports that EMI is to buy out its joint venture partner in Japan - Toshiba - raising speculation that a takeover deal with private equity firm Permira is now imminent. Reports say that certain 'change of control' conditions in EMI and Toshiba's long term JV relationship were potential stumbling blocks in the Permira negotiations, so investment types reckon the $178 million arrangement with Toshiba is designed to remove those blocks.
As previously reported, Permira have been in takeover talks with EMI for a few weeks now with bosses there seemingly in favour, in principle at least, of the proposals, if only because it will protect them from a hostile takeover by Warner Music. In the Toshiba deal EMI will regain the 45% stake the Japanese electronics firm has in their recorded music operations in Japan - with the deal reportedly due for completion in the second quarter of 2007. EMI are still being tight lipped on their negotiations with Permira, although insiders tried to play down rumours that a deal was almost done earlier this week.
Elsewhere in EMI news, word has it the ongoing Permira talks are confusing other negotiations between the major and producer Jermaine Dupri. As previously reported, Dupri recently quit as the boss of EMI's US based Virgin Urban division, but word had it bosses at the major were planning on giving him his own new venture within the group. However, word now has it that EMI bosses don't feel they can commit to any new major venture while the Permira talks are ongoing leaving Dupri, who can't take up offers from other majors because of his contractual commitments to EMI, somewhat in limbo. Or so the gossipers say.
PS: Oh, possibly scratch all that talk about "imminent deals" - the latest news is that EMI have broken off talks with their "possible buyer". More on that tomorrow.