Some indie record labels are conspiring to block Vivendi Universal’s Euro 5 billion acquisition of the Bertelsmann Music Group - a deal than would create the world’s second largest music company. A coalition of 2,000 independent labels called Impala, which includes the UK’s Beggars’ label, is planning to lodge an official appeal with the European Court claiming the merger would damage competition and extend collective dominance. The European Commission has already approved the merger, though U.S. competition authorities have yet to agree.
—Times Online reports on the likely power struggle for seats at the newly merged company. Sony Corporation and Bertelsmann are expected to nominate Bertelsmann chair and CE Gunter Thielen, and Sony Corp chair Sir Howard Stringer, as non-execs on two of the six board seats. Bertelsmann’s chair and CE Rolf Schmidt-Holtz will be non-executive chair and Sony Music’s chair and CE Andy Lack will be CE.
Related: Vivendi’s UMG To Buy BMG Music Publishing For $2.1 Billion; Napster Suit Settled