CHRYSALIS MUSIC GROUP PUTS ITSELF ON BLOCK

Chrysalis Group, a British independent music company long coveted by a number of the major labels including Warner Music Group, has officially put itself up for sale with the hopes of raising as much as $300 million, sources familiar with the situation said.

The company, which controls music-publishing copyrights from the likes of Billy Idol, David Bowie, Gnarls Barkley, Blondie and Leonard Cohen, has hired investment bank Jefferies to advise on strategic alternatives.

The Post first tipped a sale was in the works back in July.

Chrysalis acknowledged in a statement to the London Stock Exchange that it is talking to a number of parties about a possible deal.

Any sale is expected to comprise the entire company – not only its music-publishing business, sources said.

In addition to its publishing operation, Chrysalis also owns a record label called Echo as well as a CD, DVD and book-distribution division called Lasgo.

The company – headed by Chairman Chris Wright who owns a 26 percent stake in Chrysalis – is hoping to see initial bids start coming in later this month, according to one insider.

Music-industry watchers say that Warner Music Group is keenly interested in the business. It is also expected to draw strong looks from Sony Corp.’s publishing business Sony ATV.

Among private-equity players, Charles Koppleman’s CAK, Peer Music, Saban Capital Group, Cherry Lane, Evergreen, Palamone Capital Partners, Nikko Principal Investments, Crosby Capital, Apollo and Primary Wave are all expected to at least kick the tires on the company.

The move to sell the remainder of Chrysalis comes on the heels of the disposal of its U.K. radio assets earlier this year for $344 million.

While Chrysalis is hoping to nab as much as $300 million – which is already less than the $400 million analysts had estimated earlier this year – US-based publishers said a more realistic number is half that.