EMI shares tumble following court ruling

Shares in music firm EMI Group dropped 7

Shares in music firm EMI Group dropped 7.5 per cent today after a European court ruling on a merger between Sony Music and BMG cast doubts on its possible tie-up with Warner Music.

The European court annulled the European Commission's approval of a 2004 merger between Sony Music and BMG, which allowed the music industry to shrink from five major companies to four.

The case, brought to court by independent record companies, has been closely watched by EMI and Warner Music for any signs of how Europe's top antitrust authority will react to a possible merger between the two.

The European Commission said it would now have to re-examine the Sony Music/BMG deal.