ELECTRONICS giant Philips has confirmed it is in talks over the sale of its stake in PolyGram which includes the Blackburn CD factory.
Philips, which currently owns three-quarters of PolyGram, said it was in talks with Canadian group Seagram over a possible sale in what could be a deal worth £6 billion.
PolyGram is the world's largest music company with artistes on its books from U2 to Boyzone, while its film division was responsible for British hits including Bean, Trainspotting and Four Weddings and a Funeral.
Its Blackburn CD factory, which employs more than 100 people, recently hit the headlines by producing millions of copies of the Candle in the Wind tribute single to Princess Diana.
There has been talk for some time that Philips might sell off its stake in PolyGram to concentrate on its main markets.
The statement came as no surprise to many in the industry and followed persistent rumours that drinks and entertainment major Seagram was close to snapping up PolyGram.
A few days later PolyGram's rival EMI called off talks with a possible bidder, understood to have been Seagram, because an offer had not been received.
Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.
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