Geffen Records Confirms Talks With British Firm : Entertainment: Long rumored, a deal with the parent of the Capitol Records label could be worth $750 million for David Geffen.

British media conglomerate Thorn EMI, parent of the Capitol Records label, confirmed Wednesday that it is negotiating to buy or strike a distribution deal with Geffen Records, one of the last major independent record companies in the United States.

The long-rumored acquisition, if completed, is said to be worth $750 million for owner David Geffen, 46.

“We can’t confirm or deny whether there is an agreement . . . (but) we have been talking with them. Mr. Geffen has acknowledged that,” said Sharon Christians, director of corporate affairs for Thorn EMI in London.

Geffen, who in the past has heatedly denied that he is seeking a buyer and never publicly named any suitor, confirmed that Thorn EMI has “made me an offer.” But he added, “that’s hardly like making a deal.” Geffen noted that he is still negotiating with Time Warner Inc.’s music division, which manufactures and distributes Geffen’s records in return for half of the profit.

While Geffen’s 10-year-old distribution agreement with Time Warner expires at the end of the year, he said he hopes to reach some decision on the fate of his company “well before then,” possibly before this summer.

In recent weeks, the music business has been awash in rumors about a deal between EMI and Geffen, which reportedly also has been approached by Paramount Communications Inc., MCA Inc. and Walt Disney Co.

“David Geffen keeps his own counsel and no one really knows his thinking, but the feeling is that some kind of news is imminent,” said a source at Geffen Records.

One person close to MCA Records said Geffen recently told the company that he wasn’t interested in pursuing talks with MCA and planned to pursue a deal with another company.

An investment banking official said one of London’s largest investment houses has been hired to shepherd EMI’s proposed deal with Geffen. The West Hollywood-based firm’s artists include Cher, Whitesnake and Aerosmith, as well as the heavy metal band Guns N’ Roses, whose debut album has sold more than 8 million copies.

Details of EMI’s offer are sketchy.

It is not known whether the company is seeking to distribute Geffen’s records or wants to buy the company, which has about 150 employees. In addition, it is not known whether the offer also includes Geffen’s small but successful film production unit.

However, sources say an agreement is being held up because Geffen is seeking an arrangement under which he would become a sort of record czar, with all of EMI’s North American record, distribution and publishing concerns reporting directly to him.

Cash-rich Thorn EMI, whose pretax profit for the first half ended Sept. 30, 1989, rose 12% to about $171 million, has been scrambling in recent months to expand its music business portfolio in the face of strong competition from bigger rivals and a burgeoning recorded music market overseas. Last year it purchased a 50% stake in the Chrysalis label.

The company recently confirmed that it is close to reaching an agreement to buy a 50% stake in Hungary’s state recording company, Hungaroton, for about $15 million.