Universal may sell rights to top artists

UNIVERSAL Music is being pushed by the European Commission to sell the worldwide rights to key artists such as Coldplay and Kylie Minogue in order to win approval for its £1.2billion deal to buy EMI.

The company is due to meet the EC early this week to discuss the disposals it will have to make to meet competition requirements.

Universal, owned by French conglomerate Vivendi, has already offered to part with the European rights to Parlophone, EMI’s most famous label.

Parlophone has long been regarded as the jewel in the crown of EMI and if Universal – the world’s biggest music company – had to give this up the rationale for the deal would be severely weakened.

It is understood that the EC is not satisfied with the concessions proposed so far by Universal chief executive Lucian Grainge.

Universal is also understood to be proposing to give up the rights to the Chrysalis, Mute and Ensign labels and the European rights to the music of Pink Floyd and star DJ David Guetta.

Under the terms of the acquisition, Universal is obliged to pay EMI’s owner, US bank Citigroup, £1.2billion whether it can get the deal past the regulators or not.

The first instalment of 90 per cent of this sum is due to be paid on September 10.

Universal is understood to be considering whether it would be make more sense to sell EMI rather than offload parts of it piecemeal.

It will have a clearer idea of its position after this week’s meeting with the EC.

The acquisition of EMI would give Universal a global market share of about 40 per cent – and up to 50 per cent in some parts of Europe.