A merger of German's Bertelsmann AG and British's EMI Group PLC would create the world's largest music group in recorded music sales, with nearly 25% of the global market... According to music industry officials and people close to the negotiations, a Bertelsmann-EMI deal would escape the sort of cross-deal inquiry that plagued the EMI-Warner linkup owing to Time Warner's planned merger with America Online, but would still reduce the number of music-industry majors to four from five... Both companies cautioned that there was "no assurance that a transaction will result." Though the music industry is holding its breath for word on a definitive deal between EMI and Bertelsmann, people close to EMI say a deal with Warner hasn't been ruled out.