Speaking to analysts yesterday - to discuss Warner's own poor financial figures - Bronfman was reported to have said that he sees no regulatory problems in a merger with the UK major.

Bronfman said, "We feel consolidation certainly is possible", although he also said he hoped that EMI would be able to resolve its current difficulties with the group's owner Terra Firma currently looking for an additional £100m investment.

Terra is also engaged in a battle with Citigroup after alleging ...