UK independent record label Sanctuary is subject to an "unsolicited" takeover bid from its smaller rival MAMA.
MAMA, which manages artists such as Kaiser Chiefs and Franz Ferdinand, has indicated that it has received no response from Sanctuary but would proceed with the bid with or without its support.
Earlier this year Sanctuary, whose roster of artists it manages includes Elton John, The Who and James Blunt, posted a profits warning due to restructuring costs. The firm is anticipating losses of £22 million for the year ending September.
But at the present time the world's largest independent music group is unwilling to discuss a prospective approach from MAMA.
"The board confirms that it has received an unsolicited approach from MAMA that may or may not lead to an offer for the company," a statement said.