LONDON (Reuters) - British music company EMI is in talks to allow rival labels to manage its back catalogue in order to raise funds and prevent a takeover from its lender, reported the Sunday Times.
EMI, which is owned by Guy Hands' private equity group Terra Firma, is trying to put in place a new business plan as it faces a covenant shortfall on its 2.6 billion pounds debt.
The group is offering other labels the chance to manage its North American catalogue business for a five-year period, which Terra Firma thinks could raise 400 million pounds, enough to stave off a looming takeover by lender Citigroup, the newspaper said.
EMI declined to comment.
(Reporting by Rosalba O'Brien; Editing by Hans Peters)
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