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 EMI - Warner Music Group Merge plans cancelled dusty  
 2006-07-28 21:39:29 Yahoo!      
Legal Stuff The board of EMI music group has decided not to go ahead with the merger with Warner Music Group. This was mainly based on a ruling that the European Court of First Instance made two weeks ago.
But a ruling from the European Court of First Instance two weeks ago threw doubt over whether a merger between EMI and Warner would obtain regulatory clearance. The court said evidence couldn't rule out that a 2004 merger between the music units of Sony Corp (NYSE:SNE - news). and Bertelsmann AG violated antitrust rules.
That court cited a "manifest error of assessment" by EU antitrust authorities, who had earlier cleared the deal. EU officials at the time said Sony and BMG would have to resubmit their application for antitrust clearance.
The shares of EMI fell 4.1 percent on the London stock market after EMI announced that they were backing out of a merge.

If EMI and Warner Music Group would merge it would make them the second biggest record company with a market share of 25 percent. Universal would still be the biggest record company.

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