(AP)
Talk about buyer’s remorse.
Vivendi’s Universal Music Group, still days away from gaining regulatory approval in Europe to buy rival EMI, is already eager to unload upwards of $350 million in assets to win antitrust approval, The Post has learned.
Vivendi is looking forward to the sales because it could use the cash after agreeing to the mega-deal, sources familiar with the situation said.
The European Commission vote to approve the deal — which will come with a grab bag of concessions — is expected any day, though the EU has set a deadline of Sept. 27.
Prepping for the sale, UMG has hired Goldman Sachs and Bank of America as advisers, sources said. Investment bank Allen & Co. is no longer in the mix, The Post has learned.
Music bankers interested in participating in the deal are hoping to learn more details of the disposals such as territories, deal deadlines and whether the assets will be sold as part of a single auction or conducted separately.
EMI’s global revenue was $1.6 billion for the year ended March 2011.
Expected to be put on the block are global rights to Parlophone — which houses Coldplay and Australian pop star Kylie Minogue, among others — and Chrysalis, as well as Europe-only rights to Mute, Ensign EMI Classics and Virgin Classics.
UMG, the world’s No. 1 music company, delivered a $1.75 billion check to EMI owner Citigroup on Sept. 7 — representing the agreed-upon 90 percent initial payment.
It now has to work to raise enough buyer interest to cover the cost of the deal.
(UMG assumed regulatory risk in order to close the deal with Citigroup back in November 2011.)
“Lucian has taken a bit of a black eye, but all will be forgiven if he can integrate the business,” said one source close the process.
Another hurdle, according to sources, is that European regulators may look to have final say on whom UMG can sell its assets to.
The EC is invested in reducing market share below 40 percent and in creating a real competitor in the battered music business.
Bertelsmann-KKR venture BMG Rights has expressed interest in some of the assets, alongside Sony Music and Warner Music Group.
Other parties circling the deal are said to be Ron Perelman, Richard Branson and European indie label owners James Palumbo, Patrick Zelnick and Daniel Miller.
Ironically, the asset sales will ultimately reduce the $1.9 billion price tag for EMI, one that French conglomerate Vivendi can ill afford. Vivendi, which foots the bill, is looking for cost cuts of $1.26 billion.
Meanwhile, US regulators at the Federal Trade Commission are likely to sign off on the deal without further pain.
David Balto, a former policy director at the FTC who dealt with music-related issues, told The Post, “[UMG] has a pretty clear glide path to clearance from here.”
Balto says the FTC is much more interested in whether consumers are harmed by higher pricing, while the EC is focused on leveling the competitive playing field.
A spokesman for Universal said: “There is growing recognition that Universal Music’s investment in EMI will create more opportunities for new and established artists, expand music output and support new digital services. We’re working closely with regulators and remain confident of securing approval.”