Bertelsmann, EMI on Verge of a Merger Deal

British music giant EMI Group is on the verge of accepting a merger offer from German media conglomerate Bertelsmann, sources said.

The pact, which must first be approved by EMI shareholders, is expected to be announced within two weeks--possibly as early as Wednesday, sources said.

Representatives for the two corporations have been working around the clock in New York trying to hammer out the details of the merger, under which the privately owned Bertelsmann would fold its BMG record division into London-listed EMI.

Under the arrangement, Bertelsmann could pay EMI as much as $2.50 per share for a slight majority interest in the combined company, sources said.

Assuming the deal does not unravel in the days ahead, Bertelsmann and EMI must still gain approval from antitrust regulators in the U.S. and overseas before it can be completed.