EMI Group, the world's third largest music company, is on the brink of accepting a bid from Permira, the European private equity group.

Permira was understood to be close to agreeing a takeover deal last night with EMI last night.

Neither group has yet confirmed the offer price. Reports earlier this week suggested that Permira was likely to offer £2.5 billion, or 310p a share, which EMI is likely to reject as too low. Warner Music offered EMI 320p a share earlier this year.

Permira is thought to be attracted by EMI's music publishing business, currently the largest in the world. It accounts for 20 per cent of the global music publishing market and owns the rights to more than a million songs, including the Motown back catalogue.

EMI, the record label for Coldplay, Robbie Williams and Gorillaz, confirmed last week that it had received a bid offer, but would not name the bidder.

Permira was thought to be working with Apollo Management, another private equity firm, on the bid, but is now believed to be acting alone.

It would not be the first time that a private equity firm has shown interest in a music company. In 2004, Edgar Bronfman Jr, the Broadway producer bought Warner Music with the involvement of private equity firms.

The possible bid comes after a proposed tie-up between EMI and Warner Music was shelved earlier this year, when European regulators challenged the legality of a similar merger between EMI rivals Sony and Bertelsmann.

EMI shares rose by 1.83 per cent this morning, from 286.5 p to 291.75p.

Significantly, EMI did not release a statement confirming the report this morning and would not comment on speculation.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive