EMI Shares Fall, Recover, After Coldplay Remarks at Awards

Shares in EMI Group Plc declined after the lead singer of the band Coldplay said fans won't see them for a "long time.'' The stock recovered most of the loss after EMI said the band was "not quitting.''

Coldplay picked up two honours at last night's Brit Awards, the U.K.'s answer to the Grammy Awards, and singer Chris Martin suggested from the podium that the group would lay low.

"You won't see us for a long time,'' he said. "We mean it.'' He also said, "People are fed up with us -- and so are we.'' His comments prompted a front-page headline today in the London Evening Standard newspaper reading, "Coldplay Quit,'' with an article saying the band will "quit the music scene for up to two years.''

Shares in London-based EMI declined as much as 8 pence, or 3.2 percent, to 245 pence, before closing at 249.5 pence in London after EMI said the band would continue. "The shares were hit by the Coldplay thing,'' said Conor O'Shea, a media analyst at Teather & Greenwood in London. "They made some ambiguous comments at the Brit Awards, and the market took it badly because Coldplay is the most successful act EMI has at the moment.''

Coldplay's comments at the Brit Awards weren't the first time the band has affected EMI's share price. The shares dropped 16 percent on Feb. 7, 2005, after the company said Coldplay's third album, "X&Y,'' would be delayed beyond the end of EMI's fiscal year ended March 31. The album was released in June and became a global smash, debuting at the top of the Billboard album chart in the U.S. and topping many charts around the world.

The band won awards last night for best British album for "X&Y'' and best British single for "Speed of Sound.''

'Not Quitting'

"Coldplay are not quitting,'' EMI said in a statement, read by a spokeswoman. "They are on the road until July when their 16-month world tour ends in Japan. They will then continue working on new material.''

It's not uncommon for bands to take breaks after a string of hit albums and concert tours, usually for a short period before fans move on to the latest hot act.

One EMI artist, Kate Bush, took a longer respite, releasing her first new album in 12 years last year, a double compact disc called "Aerial.'' Fans stuck with Bush: she was nominated this year for best British solo artist at the Brit Awards, though the honor went to another EMI act, Scottish singer-songwriter KT Tunstall.

Source: bloomberg.com