A RIVAL bidder is threatening plans by music group EMI to take over US media group Time Warner's recorded music division.

EMI reported yesterday that Time Warner had announced it was considering a possible alternative proposal.

Although EMI and Time did not name the other party, reports said Time had selected an investor group led by former Seagram chief executive Edgar Bronfman Junior as its preferred bidder for the division, after receiving an offer of up to £1bn from EMI.

EMI said it had put forward "a full and fair offer with the interests of our shareholders uppermost in our minds".

The group's chairman, Eric Nicoli, said: "When we reach a definitive conclusion, we will make a further announcement."

EMI said earlier this week that talks with Time Warner were at an advanced stage.

If the original deal goes ahead, it will create the world's second largest music group, just behind Universal.

It would add artists including Madonna and the Red Hot Chili Peppers to EMI's roster, which already includes Robbie Williams, Norah Jones and Kylie Minogue.