LONDON (Reuters) - Private equity firm KKR <KKR.UL> and U.S. music company Warner Music Group <WMG.N> are in talks to launch a break-up bid for Warner's indebted British rival EMI <LNDONE.UL>, reported the Sunday Times.
The paper said KKR is interested in acquiring the music publishing arm of EMI, which it says bankers value at around 1.2 billion pounds ($1.82 billion), while Warner Music wants EMI's recorded music division, which it says is more difficult to value.
EMI is owned by private equity group Terra Firma Capital Partners Ltd <TERA.UL> but could be taken over by its lender Citigroup <C.N> if it does not find 120 million pounds by June 14 to cure a covenant breach said the paper.
The report said KKR and Warner would be unlikely to make a move for EMI until the stand-off between the company and its lender had been resolved.
KKR, Warner Music and EMI were not immediately available for comment when contacted by Reuters.
(Reporting by Sarah Young)
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