Permira could make an offer of 310p per share within days, but EMI is thought to want at least 350p per share.

The anticipated 310p offer is higher than Friday’s closing price of 290p but below the 320p that EMI was offered by Warner Music four months ago. EMI is one of the four largest recorded music groups in the world. Its artists include Robbie Williams, Coldplay and the Rolling Stones.

It is the second time in a few weeks that the names of EMI and Permira have been linked. Last month Permira was thought to be working in partnership with Apollo Management, another private equity firm, on a joint approach. Private equity firms are believed to be attracted to the repeat cashflows of EMI’s publishing business, which owns the rights to the Motown back-catalogue. The division is the world’s largest, accounting for 20 per cent of the global music publishing market.

Kohlberg Kravis Roberts, the private equity giant, and Goldman Sachs, the investment bank, are also thought to have looked at EMI. However, a deal with a venture capitalist would not deliver the synergies promised by a tie-up with a big rival such as Warner, which could encourage shareholders to hold out for a higher bid.

Edgar Bronfman Jr, the Broadway producer, acting with private equity firms, bought the New York-listed Warner Music from Time Warner in 2004.

European regulators blocked a merger between EMI and Warner in 2000. This summer each company twice made an offer for the other but talks were put on hold after a European Court of First Instance ruling that challenged the merger between the recorded music businesses of Sony and Bertelsmann. The ruling cast doubt on whether an EMI-Warner deal would get regulatory clearance.

EMI failed to return calls yesteday. Permira refused to comment.

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