Bertelsmann, Europe’s biggest consumer media group, said that it would sell out of the music business if Sony, its joint-venture partner, was willing to offer a similar valuation to that paid by Guy Hands when he bought EMI for £2.1 billion last year.

The German company, which also owns the broadcaster Five and the publisher Random House, has to decide in August whether it wants to buy, sell or stick with its half share in Sony BMG, the company behind Bruce Springsteen and Leona Lewis, as it tries to boost its anaemic growth rate.

Thomas Rabe, the chief financial officer, said: “What we will do depends on price. Of course, the EMI price is a good price for a seller, but we would not be interested in selling if we were offered a figure based on the current valuation of Warner Music. The market is undervaluing music assets.”

Bertelsmann wants to boost its organic revenue growth to 4 per cent annually, after it reported annual results that showed an overall improvement of 0.4 per cent to €18.8 billion (£14.7 million) in 2007. Progress was hampered by a 7 per cent decline in its music business and by a 7.9 per cent fall in its book, film and music clubs, particularly in North America.

Hartmut Ostrowski, presenting his first set of results since becoming chief executive in January, said that the company’s businesses “were growing weakly or not at all” and conceded that the 0.4 per cent improvement was “not sufficient”. He promised to make €5 billion available for acquisitions “in the next five years”.

Target areas include “education services, internet, business services and TV production”, he said, which would appear to rule out a move by the TV division RTL on ITV. However, the expectation is that Bertelsmann will offload its half-share in Sony BMG and that the company is trying to talk up the price. Bertelsmann has also canvassed private equity firms regarding their potential interest, in the belief that Sony may be unwilling to go for a buyout.

Despite falling sales, Bertelsmann’s half of Sony BMG earned €93 million, up by €3 million, helped largely by cost cuts in marketing and sales. Its bestselling albums were The Best Damn Thing, by Avril Lavigne, and As I Am, by Alicia Keys, both of which sold about five million copies.

Explore Industry Sectors

• Banking & Finance

• Construction & Property

• Consumer Goods

• Engineering

• Health

• Industrials

• Leisure

• Media

• Natural Resources

• Retailing

• Support Services

• Technology

• Telecoms

• Transport

• Utilities

Times Recommends

• BA chief waives bonus after T5 fiasco
• Prospects of cheaper loans hit as Libor soars
• Rice price dives as US and Japan set to unlock grain pact