EMI denies £35m payoff to Mariah

EMI is still on the verge of parting company with Mariah Carey despite attempts by the music group yesterday to distance itself from reports that it is looking to pay her off.

The company issued a Stock Exchange statement denying that it has paid, or agreed to pay, the pop diva a lump sum to release her from a lucrative recording contract. "EMI wishes to make clear that it has made no such payment or agreement," it said.

However, it is understood that negotiations to sever the relationship with the fading star are continuing and that she will not make another album for the EMI-owned Virgin label. Reports have suggested she will be paid around $50m (£35m) to release her from her four-album deal. EMI said Mariah Carey still has "a multi-album recording deal". However, it is thought that Glitter, her first album released by Virgin in September, may also be her last for them.

Glitter has sold only 2 million copies. This compares with 20 million copies of Music Box, her most successful album, released at the peak of her success in 1993. EMI was heavily criticised last year when it agreed a deal worth an estimated £57m with Ms Carey. EMI shares closed 10.25p lower at 379.75p.