Information  X 
Enter a valid email address

EMI Group PLC (EMI)

  Print      Mail a friend

Tuesday 01 May, 2001

EMI Group PLC

EMI Merger/Trading Update

EMI Group PLC
1 May 2001


          EMI AND BERTELSMANN END MERGER DISCUSSIONS;
                      EMI TRADING UPDATE


LONDON, 1 MAY 2001 - EMI Group plc ('EMI') today announces
that  it  has  agreed with Bertelsmann AG to  end  discussions
about   a  possible  merger  of  its  music  businesses   with
Bertelsmann Music Group ('BMG').

Over the past five months, the two companies have conducted  a
rigorous  assessment of alternative structures  and  antitrust
remedies.   It  has  not  proved  possible,  in  the   present
regulatory environment, to construct a combination which  both
creates significant value for shareholders and also has a high
likelihood  of approval from antitrust authorities  in  Europe
and  the  USA.  Both companies feel that  it  is  not  in  the
interests  of shareholders, artists or employees to allow  the
uncertainty to continue.

EMI's  costs for the work to date are not material  and  there
will  be no further provision for deal costs beyond that  made
at the half year.

EMI's  trading results for the 12 months ended 31  March  2001
will be presented in detail on 22 May. However, the company is
pleased to provide an early indication of the outcome for  the
year. Based on unaudited results, group sales improved by  12%
to  almost  £2.7 billion and group operating profit (excluding
associates  and  HMV) increased by 14% to  approximately  £330
million.  Adjusted  profit  before  tax  increased  by  6%  to
approximately 260 million.

EMI Group Chairman, Eric Nicoli, said:
'After exhaustive analysis and discussion, we have been unable
to   find  a  deal  with  Bertelsmann  which  works  both  for
shareholders and for the regulators.

'We are, nevertheless, excited about EMI's future.  We are the
world's  third  largest record company and the  largest  music
publisher and we will continue to take bold steps to build our
business.   EMI  has good momentum and the recent  signing  of
superstar Mariah Carey, the appointment of Andy Slater as  CEO
of   Capitol   Records  and  the  creation  of  the   MusicNet
partnership,  will  all contribute to the next  phase  of  our
development.

'I  am  delighted that we have produced very good results  and
further  strengthened  our  business  despite  the  inevitable
distractions over the period of merger discussions.

'Finally,  I  want  to say that our dealings with  Bertelsmann
have  been  constructive  and  friendly  throughout.   A  very
positive  relationship has developed between our two companies
and I wish the Bertelsmann team well for the future.'

                               

Contact: Amanda Conroy, EMI Group, London tel: + 44 20 7667 3216
         Patrick Handley, Brunswick Group, London tel: + 44 20 7396 5395