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Bronfman has edge in bid for Warner music

NEW YORK, Nov. 21 (UPI) -- Former Seagram Co. head Edgar Bronfman Jr. has emerged as Time Warner Inc.'s preferred buyer of Warner Music Group.

Time Warner's board Thursday told Bronfman's investor group that it had until the end of the weekend to negotiate a final deal, the Wall Street Journal reported Friday.

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Bronfman's group is offering about $2.5 billion in cash for both Warner's recorded-music operations and its music-publishing business.

The basic deal has been agreed upon, the Journal reported. Time Warner has the option to keep as much as 20 percent of the music company, though it also will have the right to buy a minority stake at a discounted price in the future, and it may not choose to keep any stake now, a source close to the situation told the Journal.

If Time Warner can't reach a deal with Bronfman by Sunday night, it may go back to EMI, a British company offering as much as $1 billion in cash and an equity stake of 20-25 percent.

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