£20m pay-off for EMI's Mariah Carey

Mariah Carey was formally dismissed from her record label today after EMI announced it had paid her £19.6 million to terminate her contract.

In a statement to the Stock Exchange, EMI said it would be writing off an additional £18.5 million to bring an end to what had become a highly public dispute with one of the world's highest-profile pop performers.

For months both sides had appeared to indicate a separation had been reached, only for denials then to be issued.

Eight years ago, the US singer was selling 20 million albums. But 31-year-old Carey's high-profile breakdown in the past year has attracted more attention than her new album Glitter, whose sales of only two million are said to be behind EMI's decision to get rid of her. The singer is said to be "numb with shock" at her sacking.

At 23 she married Tommy Mottola, 43, the head of her record company Sony Records. Her 1991 album Emotions went double platinum, as did 1993's Music Box. But she and Mottola divorced. Her £60 million signing with EMI's Virgin label last April was said to be a move to get away from her ex-husband.

A relationship with Latin singer Luis Miguel broke up after three years.

Last year she checked into hospital after an apparent suicide attempt and her publicist said then: "Mariah has suffered an emotional and physical breakdown. She is under psychiatric care."