Warner Music said to thin bidders to Gores, Burkle, Blavatnik

Warner Music Group Corp, the music company that put itself up for sale in January, narrowed the list of bidders to three, according to two persons with knowledge of the deliberations.

Ron Burkle’s Yucaipa Cos, Len Blavatnik’s Access Industries Holdings and billionaire brothers Tom and Alec Gores were competing for the deal, said one of the persons, asking for anonymity as the talks were private. More bidders might be let in later, the person said.

The remaining suitors offered $3 billion or more each for Warner Music’s recorded music and publishing assets, said one of the persons. A final decision may be made within four weeks.

The New York-based company, which had originally planned to sell its music-publishing unit and bid for EMI Group Ltd, hired Goldman Sachs Group Inc in January and drew more than 10 bids for all or parts of its businesses.

On April 13, The Wall Street Journal reported the Warner Music’s board would pursue the sale of the entire company, rather than in parts.

Amanda Collins, a spokeswoman for Warner Music, declined to comment. Eight of the company’s 13 directors are executives of Thomas H Lee Partners LP and Bain Capital LLC, two Boston- based private-equity firms that together hold 51 per cent of the company’s shares. Edgar Bronfman Jr, who holds about seven per cent, is chairman and CEO.

Warner Music, whose artists include Cee Lo Green and The Black Keys, yesterday fell four cents to $7.43 on the New York Stock Exchange composite trading. The shares have climbed 32 per cent this year.

Michael Sitrick, a spokesman for Blavatnik, declined to comment. Blavatnik is a former director of Warner Music.

BROTHERS BID
Frank Stefanik, a press contact for Alec Gores, declined to comment. His Los Angeles-based private-equity firm Gores Group made an unsolicited offer for CKX Inc, an owner of “American Idol,” a person with knowledge of the bid had said on April 1.

Alec Gores is teamed with Tom Gores, who runs Beverly Hills, California-based Platinum Equity LLC and last week agreed to buy the National Basketball Association’s Detroit Pistons. Mark Barnhill, a spokesman for Platinum Equity, didn’t immediately respond to requests for comment.

Frank Quintero, a spokesman for billionaire Burkle’s Los Angeles-based Yucaipa, didn’t immediately return messages seeking comment.

BMG Rights Management GmbH, the Berlin-based music publisher controlled by KKR & Co, made an offer for all of Warner Music, people with knowledge with the discussions said in March.