EMI Wants To Explore "Strategic Alternatives"
EMI Group Ltd, the holding company for EMU Music Group, announced today that its Board of Directors of its had "initiated a process to explore and evaluate potential strategic alternatives, including a possible sale, recapitalisation or initial public offering of the Company." Given that CitiGroup took control of EMI after a loan default earlier this year, the announcement appears to be the next formal step as the bank searches for the best way to offload the company.A reacapitalization or IPO seem unlikely given EMI's recent past and the financial market's wary view of recorded music companies. A sale - as a whole company or in pieces - is more likely.
In making the announcement, EMI stated that there are "no assurance that this strategic review process will result in a transaction" and added that they do not intend to disclose developments "unless and until its Board of Directors has approved a specific transaction".