Mariah's EMI dips by £85m

The astonishing saga of Mariah Carey's chequered pop career took another bizarre twist today as her record company - the EMI Group - saw £85 million wiped off its stock market value in the wake of mounting confusion over Carey's future with them.

Shares plummeted 11p after executives at the group revealed they had failed to reach a settlement with the singer to terminate her record-breaking contract, which was estimated to be worth between £55 million and £80 million. Today's news is the latest in a rollercoaster ride for the fortunes of the singer.

By all accounts, the last few months for Carey have left her career crumbling around her. Cracks first appeared in the hitherto all-conquering career last year, when she made headlines with a high profile emotional breakdown. The news came at the same time as her label EMI's Virgin Records reported terrible album sales for the artist's most recent record.

At the peak of her popularity in 1993, the singer's Music Box album sold 20 million copies across the globe. By contrast her latest album, Glitter, the first to be released under the five-album deal, has sold a mere two million copies since its release in September - and the film of the same name in which she starred failed to sparkle at the box office.

This flop is believed to have cost the record company £7 million, which combined with her breakdown led to rumours that Virgin executives had bought out her contract. Subsequently, it was reported that EMI Group had offered a £35 million lump sum as compensation for quitting the contract. Her ignominious fate was reported to have been thrashed out between her lawyers and Virgin Records.

But the official line today was that EMI had not in fact secured the pay-off - leading to the £85 million drop in its stock market value. Last week the shares had risen by 291/2p - nine per cent - to 390p, on rumours that it had finally extricated itself from the record deal with the American singer.

EMI told the Stock Exchange: "In light of recent press comment that EMI has paid or agreed to pay Mariah Carey a lump sum to release her from her recording contract, EMI wishes to make clear that it has made no such payment or agreement. EMI has no further comment to make." A spokeswoman refused even to say whether or not the company is or had been in negotiations with Carey or her agents.

Adding to the confusion today, Carey's European publicist said: "Everything is looking very positive for Mariah at the moment - and as far as I am aware, she still has a very long contract with her label to see through. She is recording a new album at the moment and performing the national anthem at the Superbowl in February.

"She will also be at the Sundance film festival with her new movie Wise Girls. As far as I know, all this talk of a buy-out has been based on rumour and no more. I am not at liberty to say anything else about it."

The 31-year-old singer jumped ship to EMI's Virgin label after 10 years with Sony Music, where she had 13 number one hits in the US. The move followed a massive fallout with her ex-husband Tommy Mottola, president of the Sony music entertainment business and the man who discovered her.

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