Guy Hands, the chairman of EMI, the music company, has tabled a bid for Chrysalis, one of Britain’s last big independent music groups.

The audacious move by Mr Hands, whose private equity group, Terra Firma, bought EMI for £3.2 billion last year, follows a tumultuous month for the country’s best-known music company.

Mr Hands announced this week that he was cutting nearly a third of the firm’s 6,000-strong workforce as part of a cost-cutting drive that is aimed at saving the company £200 million a year and creating a “new revolutionary structure” for the business. However, the restructuring of EMI under Mr Hands and his management team has been attacked by some of the group’s best-known artists. Radiohead, the Rolling Stones, Robbie Williams’s management and Sir Paul McCartney have all criticised the company.

The Rolling Stones confirmed yesterday that they had signed an album deal with Universal, a rival music company.

Mr Hands had hoped that he could announce the appointment of a new chief executive at EMI as early as this month, but said this week that he wanted to wait until the cost-cutting drive had been completed before installing a new leader to develop the business.

EMI’s indicative bid for Chrysalis, which owns the music publishing rights to artists such as Blondie, David Gray and much of David Bowie’s early work, follows a decision by Chris Wright, its founder of 40 years, to carry out a review of the business, which could lead to a sale.

Mr Hands, who has also faced personal criticism, with many claiming that he does not understand the music business, said in a memo to investors last year that he saw “potential for consolidation” in the industry.

However, he is facing competition in his bid for Chrysalis. Jefferies International, Chrysalis’s adviser, has also received an indicative bid from Warner Chappell, the music publishing unit of Warner Music. An offer is also thought to have come from Sony/ ATV.

Sources said yesterday that private equity firms and specialist music publishers have also shown an interest. It is understood that Chrysalis received a lot of early-stage interest last month when it held preliminary discussions with a number of parties.

Analysts have said that the group could be valued at more than £150 million.In addition to its music business, Chrysalis also has a struggling CD distribution arm called Lasgo. Chrysalis sold its radio business to Global Radio for £170 million in July and the group has said that it expects to return £96.5 million to shareholders.

Mr Wright said in November that he was sitting on a “jewel of a business” but added that he was sceptical about the prospects of receiving an attractive offer in the present climate.

Marty Bandier, the chief executive of Sony/ATV, is aggressively pursuing deals, although the group refused to comment yesterday.

Others believed to have shown interest in the company include private equity funds Saban Capital Group, GTCR Golder Rauner and Apollo Management, and music publishing specialists Primary Wave and Cherry Lane. However, it is not known if any of these have made a bid.

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