EMI Group said yesterday it had terminated talks with a third party about possibly acquiring the music company since no offer had been made after several weeks.
The announcement came one day after the Dutch music and film giant PolyGram was effectively put on the block after Philips Electronics said it was considering options for its 75% stake in the company.
Analysts believe the company that was talking to EMI may now be interested in PolyGram.
In a tersely worded statement, EMI, the world's third-largest music company, said that it was making the announcement to ''put an end to the uncertainty and consequent speculation'' which it considered as damaging to the interests of both shareholders and employees.
''Despite discussions over several weeks, no offer has been received and the board has informed the third party that it is not willing to let the uncertainty continue,'' it said.
It went on to say the company remained ''confident'' about the prospects for the music industry.
''Given its powerful position in both emerging and developed markets and the quality of its new management team, the board believes that EMI is in a strong position to exploit opportunities for developing shareholder value against a background of continuing industry change,'' EMI said.
EMI traces its roots back over a century and has produced a host of famous artists stretching from Dame Nellie Melba to the Rolling Stones and the Beatles, a group it first rejected but then signed in 1962.
Shares of EMI fell on Thursday after the statement from Phillips was taken as a signal that it might sell all or part of its stake in PolyGram and that PolyGram may be a rival bid target for a company seeking to expand its music interests.
EMI confirmed last week it had been approached by a would-be suitor. This was widely believed to be the drinks and entertainments group Seagram.
But US sources said on Thursday that Seagram, which first approached EMI two years ago, may be talking to PolyGram.
PolyGram is the world leader in music sales with close to 17% of the $40bn (#25bn) global business, while EMI is second with about 15.3%.
EMI shares yesterday closed 2p easier at 573p. - Reuter.
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