LONDON - London-based EMI confirmed it is in talks with Time Warner over buying the US giant's music division, a deal which would bring many of the world's top pop and rock stars under one roof.

EMI, whose top acts include the Rolling Stones, Robbie Williams and Coldplay "has now entered non-exclusive discussions" with Time Warner over a possible deal involving Warner Music Group, EMI said in a statement.

"Discussions are at a very preliminary stage and there is no assurance that they will result in an agreement acceptable to both parties," it added.

The German media giant Bertelsmann is still negotiating with AOL Time Warner on a possible merger of their music publishing businesses, despite the EMI offer, a source close to the talks told AFP on Monday.

"Bertelsmann and Time Warner are at an advanced stage of talks" to combine their music arms BMG and Warner Music, the source said.

The source added, however, that "some points still need to be clarified".

The announcement followed weekend press reports saying that EMI was keen to add Warner's stars such as Madonna, Red Hot Chili Peppers and Linkin Park to its roster.

If successful, the purchase would create the world's second-largest music group behind Universal.

The EMI statement made no mention of any potential sum involved, but a report by Britain's Sunday Times newspaper said EMI had offered 1.5 billion dollars (910 million pounds, 1.3 billion euros) in cash and shares.

A similar tie-up fell foul of regulators in 2000, but the report said that the recent squeeze in music business profits from slumping CD sales and piracy meant a better case could now be argued for industry consolidation.

In May, EMI announced a 16-percent increase in annual profits thanks to strong sales by its top acts, but warned that the recorded music market was set to fall again in the coming year.