Warner Music emerged as the most likely winner in a fourway takeover showdown with private equity groups for EMI yesterday, after the music group granted the possible buyer access to its books.

Warner is understood to be offering £2.1 billion, or 260p a share, for its rival, beating offers in the region of 255p that private equity groups are believed to be considering.

One Equity – the private equity arm of JPMorgan Chase – Cerberus Capital and Fortress are understood to have put together bids after examining EMI’s books.

However, Warner is unlikely to go higher than 260p in an auction, according to sources close to the group. EMI rejected a bid at this level as too low in early March.

EMI’s decision to grant access to Warner marks a turning point in a seven-year courtship. Warner first approached EMI about a tie-up in 2000.

EMI shareholders are understood to favour a bid approach from Warner because of its experience in the music business, while Impala, the body representing independent music companies, reiterated its support for the deal after Warner agreed to concessions that would protect smaller players in the market. A proposed merger between the two is also thought likely as the risk of regulators blocking the deal appears to be fading.

An investigation into the impact on the market of a similar tie-up between Sony and Bertelsmann by the European Commission is due to conclude shortly. Industry sources expect that a Commission decision is likely to pave the way for a marriage of EMI and Warner.

EMI confirmed yesterday that it had received several bids.

The news comes as Sanctuary, the struggling music group, appears to be on the verge of accepting a takeover offer, after it said it had received a number of takeover approaches.

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