Following announcements last week that EMI's profits were going to be "significantly" lower than previous expectations, Warner have made another offer to merge with the rival music group.

There have been previous attempts to merge the two giants - back in 2000 and 2003 respectively - but both times, fears over regulatory restrictions and monopolies legislation have held them back. Considering the European Commission is currently making concerned noises about the 2004 merger of Sony and BMG, you can see where the fear comes from.

However, EMI's mooted plans to split the profitable Publishing division from the indebted Recording division might stir the whole pot in unexpected directions. Although EMI's refinancing plan was originally intended to stave off take-over bids, the fragmentation of its business might be leaving themselves wide open for Warner to swallow parts of EMI whole.