UPDATED: EMI In $4.1B Split Sale To Sony, UMG

(UPDATE) Several major media outlets are confirming that Citigroup has chosen Sony and Universal as winners of an auction that totalled $4.1 billion for the publishing and recorded music divisions.

The sale of EMI's two divisions to separate buyers is nearing completion, according to several sources. On the publishing side, a Sony led consortium has reportedly closed a needed deal with GSO, the credit arm of Blackstone, to finance $500 million of the $2.2 billion rumored purchase price. Unless, BMG trumps the offer at the last minute, a deal could be announced as early as today.

The Sale Of EMI's Recorded Music Division:

Vivendi’s Universal Music is also expected to announce that it has agreed a $1.9 billion deal for EMI’s recorded music business, according to the Financial Times. The deal, which would be a huge win for new UMG head Lucian Grainge,  was reportedly struck after owner Citigroup agreed to take on EMI's pension liabilities.

NOT SO FAST…

But even before the ink is dry on any deal, opposition is already mounting in Brussels, as EU regulators encouraged by indie trade group Impala, worried that Universal is getting too big and too powerful. Some pecuslate that Vivendi may even have to sell of some of its new assets to gain EU approval, as well as, to assure credit rating agencies that the company is not over extended.