EMI shares rise on possible takeover

Shares of record company EMI Group PLC, whose artists include Coldplay and the Beatles, rose more than 10 percent Tuesday after the company said it received an approach about a possible takeover of the business.

EMI did not say who the potential bidder was.

The Wall Street Journal, citing people familiar with the deal, said European private equity firm Permira Advisors Ltd. made a preliminary takeover offer. A spokesman for Permira of London declined to comment.

Earlier the Financial Times, also citing unidentified people familiar with the situation, reported that companies including Goldman Sachs Group Inc. and Kohlberg Kravis Roberts & Co. may be prepared to pay 2.5 billion pounds ($4.85 billion) or more for the company. The discussions remain at an early stage and may come to nothing, the FT said.

Dow Jones Newswires cited a person familiar with the situation as saying that KKR wasn't interested in bidding.

EMI shares gained 10.4 percent to close at 289.5 pence ($5.61) on the London Stock Exchange.

The company was in takeover talks earlier this year with U.S. rival Warner Music Group Corp. about a $4.6 billion deal, but those talks were clouded by a European court ruling annulling earlier approval of the 2004 merger of Sony Corp.'s Sony Music and Bertelsmann AG's BMG -- casting doubt on whether an EMI-Warner deal would receive regulatory approval.