So, it all kicked off yesterday, as the fall out of IMPALA's decision to support a Warner Music takeover bid for EMI (should such a bid actually be made) continued as Ministry Of Sound issued an open letter via their lawyers demanding that the Association Of Independent Music make available all documentation relating to the IMPALA decision and that, as affiliates of the European trade body, they oppose and overturn the Warner agreement.
As previously reported, Ministry announced on Friday that it was quitting AIM over the IMPALA decision, but in its letter yesterday they went further by implying that the association was legally bound, based on its own constitution, to block the IMPALA decision because, the indie's lawyers argue, supporting a Warner takeover of EMI was simply not in the interests of the majority of the trade body's member labels.
In a long letter, Ministry Of Sound also claim that the IMPALA/Warner deal was deliberately done behind closed doors so the arrangement could be announced before any independents opposing the move could have their say.
The letter claims that when MoS MD Lohan Presencer contacted AIM chair Alison Wenham shortly after IMPALA first announced its Warner deal last week, even she seemed to be in the dark regarding the agreement, despite also sitting on the IMPALA board. The letter also says that Konrad von Lohneysen, who represents independent labels on the board of the German branch of industry trade body IFPI, and who is usually in regular dialogue with IMPALA regarding issues such as major label mergers, was also not informed of the Warner arrangement. The suggestion or implication seems to be that the deal may have been done by certain AIM/IMPALA member labels primarily for the benefit of those labels' own commercial interests.
Ministry is now demanding that AIM make available to its members all minutes, submissions and correspondence relating to major label mergers and the Warner deal. Moreover, as an IMPALA affiliate, they say that AIM has the option to not ratify the Warner arrangement, and that they "require" the trade body to do just that, adding that AIM "has the right and indeed an obligation to seek to overturn the actions taken by IMPALA in approving this proposed merger".
AIM is yet to respond to the letter though, to be fair, as of late yesterday they hadn't officially received it yet. A Billboard report that we reported on yesterday said the trade body had called an emergency board meeting for today to discuss Ministry's objections to the IMPALA deal. That meeting hasn't, in fact, been formally confirmed, although insiders say discussions between AIM board members will take place this week in a bid assess the general opinion of its member labels regarding the IMPALA/Warner deal, and how to respond to Ministry's demands. More when we get it then.