BMG has issued a strong denial of a NY Post story regarding supposed internal conflict amongst the company's owners.

The Post rumoured yesterday that friction was growing between KKR and Bertelsmann - the joint parents of the music rights firm - over a potential bid for Parlophone.

The newspaper suggested: "If BMG wins the EMI auction, it stands to double its revenue and become a significant player in the recorded-music business. If it fails, KKR could head for the exit, ...