EMI has tabled an indicative bid for music firm Chrysalis, sources confirmed today.
Guy Hands, whose private equity firm Terra Firma bought EMI last year, faces competition, however, as Chrysalis has also received indicative bids from several other groups including Warner Chappell, the sources added.
Chrysalis sold its radio assets last year to focus on its music publishing and recording business and it said in December that it was in preliminary discussions with parties that could lead to an offer.
Shares in the music group shot up almost 11 per cent at the start of trading on Friday, and were up 7.6 per cent at 106.5 pence at 10:25 a.m.
EMI, Chrysalis and Warner Music all declined to comment.
According to a report in The Times, Sony/ATV, a joint venture between Sony and the singer Michael Jackson, has also made a bid, while private-equity firms and specialist music publishers have also shown an interest.
Chrysalis is one of the few remaining independent publishers in Britain and has Blondie, David Bowie, David Gray and Gnarls Barkley on its roster.