Sony Music and BMG Rights Management are reportedly joining forces to bid for assets divested from Universal's £1.2bn acquisition of EMI Music.
According to the New York Post and Financial Times, the duo are putting together a $500m (£300m+) offer for the assets, which will include catalogue and current artists which fall under the Parlophone Label Group banner.
The Post reports that the agreement would see modern Parlophone recording artists - including Kylie Minogue and Coldplay - would then go to Sony, whilst catalogue rights would go to BMG.
The FT says that Warner's recent appointment of former Sony exec Rob Wiesenthal as COO was made at least in part to bolster its bid for UMG/EMI assets.
Other than Sony-BMG and Warner, other bidders are believed to include Simon Fuller and Chris Blackwell, plus Ron Perelman’s investment group, MacAndrews & Forbes.
The deal is expected to be wrapped up by the end of February, but Universal has until the end of March should it need more time.