ALAIN LEVY, the former boss of EMI’s recorded-music division, is plotting a return to the media industry with a TV venture that harbours ambitions to rival Endemol, producer of Big Brother and Deal or No Deal.

He has linked up with Stephane Courbit, the former boss of Endemol France, to raise funds for Banjay Entertainment, through which the pair aim to buy up TV production houses in five countries across Europe.

They have been touring private-equity firms and hedge funds in London to raise capital for a June launch.

Documents circulated to would-be investors claim that €330m (£261m) has already been contributed. Almost half of that comes from Courbit. Other investors include Bernard Arnault, the magnate behind French luxury goods house LVMH. However, some backers who feature in the document claim not to be involved.

Arnault and Courbit were failed bidders in the Endemol auction last year. The company was sold for £2 billion to a consortium including founder John De Mol and former Italian premier Silvio Berlusconi.

Courbit caused problems for Endemol’s previous owner, Spanish telecoms giant Telefonica. His huge uncapped earn-out, dating from the sale of his own production business to Endemol, meant the French division had to be carved out before the company was floated by Telefonica. It then had to settle with Courbit before Endemol could be auctioned.

Levy was ousted from EMI in January 2007 after the company disclosed poor recorded-music sales and a tumbling market share in North America. Six months later it succumbed to a £3.2 billion bid from Guy Hands. Levy received a £4.6m payoff from EMI.

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