WMG Derby Heats Up

BMG OUT IN WMG AUCTION? BMG Rights Management’s bid for Warner Music Group has been pushed to the back of the pack, according to a report in U.K.’s Music Week. The KKR/ Bertelsmann joint venture’s offer of between $2.8 and $3 billion for the entire company is far lower than others received by Goldman Sachs, who are conducting the auction. One source insisted WMG has received more than one bid of more than $3 billion. “KKR and BMG have been too arrogant and will lose out because of that,” he said. The German company is also said to be joining forces with Sony to place a separate joint bid for the company. Private investment group Tamares was added to the list of Warner suitors , joining Platinum Equity, Len Blavadnik’s Access Industries, Ron Burkle’s Yucaipa Companies, Guggenheim Partners and Sony Music Group. The sale is expected to close within the next two weeks. (3/25p)