Business

Citi is shopping EMI

While Warner Music Group’s sale has been hogging all the headlines in the recent weeks, things have been curiously quiet over at Citigroup concerning an EMI sale, until now.

Sources have suggested all kinds of reasons for the radio silence, from Citigroup trying to work out some barter deals to rumors that former EMI owner, Guy Hands, had locked Citigroup out of the company until legal wranglings were sorted out.

Well folks, the wait is over. Our highly placed sources confirmed to On The Money that Citi isn’t sitting on its hands — so to speak — any longer.

The bank is quietly soliciting interested parties and sitting down to discuss what parts of EMI they’d want to bid on and how rapidly they could close a deal in the hopes of not being left at the altar.

“They’re sorting the goats from the sheep, rather than entertaining all comers,” said a source.

Among those holding discussions are Universal Music Group and Sony, along with Ron Burkle‘s Yucaipa Co., private-equity firm Apollo and Len Blavatnik‘s Access Industries. Blavatnik holds a 2 percent stake in Warner Music.

Add Warner Music boss Edgar Bronfman, to the list too. He’s long wanted to scoop up EMI, which houses everyone from Katy Perry to The Beatles. Citi declined comment.

Citi’s latest move sets up more direct competition with Warner Music, which is a few weeks away from wrapping its sale process and is currently waiting to hear how bidders will finance their plans.

There are many questions that are weighing on people’s minds, but paramount for buyers must be who’s got the better business. Both are valued at roughly the same amount, around the $3 billion mark, with the publishing divisions likely to go for $1.8 billion.

Lisbeth Barron, manag ing director at boutique invest ment bank Berenson & Co., said: “The old way of thinking was that recorded music and music publishing should be separated, given their differ ent growth prospects . Today, the thinking has changed to now believing strongly that the two divi sions should stay under one roof to be most com petitive with artists, adver tisers, studios etc.”

As far as Warner’s bid process is going, sources tell On The Money that Burkle’s bid will likely be the most aggressive.

“He’s very serious about it. He thinks it’s a sexy asset and that’s why he looked at Miramax and did the deal [for Vibe] with Magic Johnson.”

A spokesman for Burkle didn’t return calls.

Others reportedly circling Warner include Tom Gores‘ Platinum Equity, Permira, Sony Corp. and Access Industries.

Claire Atkinson

Take the cannoli

“A typical Mafia don knows more about effective leadership than a trunkful of Fortune 500 CEOs.”

So says Louis Ferrante, a former Gambino mobster who became a best-selling author after serving nine years in federal prison as a result of not ratting out his cohorts.

The reward for the 41-year-old Queens native was being able to retire peacefully and to start using his pen to make killings.

After his successful first book in 2009 was sold to Hollywood, Ferrante’s second book is pure business: “Mob Rules: What the Mafia Can Teach the Legitimate Businessman.”

Meant to be tongue-in-cheek, it pours out spicy tales of mob lore to make its management points, an approach that most executives couldn’t refuse.

The book offers 88 lessons that evolved from spilled blood and broken bones in smoke-filled back rooms, almost mirroring some of Wall Street buccaneers.

On competition: “I got an inside guy.”

On networking: “It’s good to go to a funeral as long as it’s not yours.”

Taxes: “Always give Uncle Sam his vig.”

Confidences: “Three can keep a secret (if two are dead).”

The book for Portfolio/Penguin is due in June.