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08:17 WMG Warner Music Group’s plea to EMI investors - Sunday Times (17.03 )

Sunday Times reports Warner Music is considering pursuing a merger with EMI by making a direct appeal to its rival's shareholders in an attempt to undermine the opposition of EMI's mgmt. The EMI board last month rejected what it described as a "preconditional offer" pitched at 260p per share.

Any deal between the No. 3 and No. 4 recorded music cos would require clearance by competition regulators. Warner remains keen to press ahead because it believes the European Commission's review of the Sony (SNE) BMG merger provides an opportunity to reshape the global music industry, creating three strong "majors" and a vibrant independent sector.

Warner sources said the American co's planning was given fresh urgency last week after EMI announced an initiative to scrap copyright protection on digital music. Although the move was widely praised by technology and consumer commentators, Warner is concerned that EMI could be making a grave mistake. Its mgmt was astonished that EMI had made a decision with such potentially far-reaching consequences while it was a bid target.