Bertelsmann puts publisher on block; industry eyes publishing gems, as Bertelsmann ends speculation and announces sell-off.(Publishing)

BMG Music Publishing Worldwide chairman and CEO Nicholas Firth has declared his interest in partnering with bidders for his company in a management buyout, after Bertelsmann put it up for sale last week.

Bertelsmann ended weeks of speculation about the future of the publishing operation, by announcing last Thursday that it was planning the "divestment" to help fund a 3bn [pounds sterling] (4.5bn [euro]) shares buy-back.

The business, which can claim some of the biggest jewels in modern British music, including the publishing rights to Coldplay, Keane and Robbie Williams, is valued by publishing sources at around 1bn [pounds sterling].

Although there will be no shortage of potential bidders, the Bertelsmann statement indicates that the group is keen to avoid a big auction. It says that the process, which will start next month, will see the media group "invite selected bidders"; a source indicates that these may number up to around a dozen, including both strategic partners and private equity firms.

It is understood that, while Firth and his team cannot lead a management buyout while continuing to run the operation or assisting in the sale process, he is keen to manage the company.

In a statement, Firth says, "Management is working with Bertelsmann and Bertelsmann's advisors. If a qualified financial sponsor is interested in acquiring BMG Music Publishing, then I and the management team would be very interested in exploring a management buy-out."

He adds that his company continues to operate as usual, continuing to sign acts and discuss catalogue acquisitions.