Silicon Valley: Apple Computer Inc is in talks with Vivendi Universal to buy Universal Music Group, the world's largest record company, media report said on April 12.

Apple hasn't made a formal bid, but may offer $ five billion to $ six billion for the music company, before Vivendi's April 29 board meeting, sources said.

The discussions, a closely held secret for several months, would deal with unresolved issues, the 'Los Angeles Times' quoted them as saying.

Vivendi is seeking to cut its debt and regain investor confidence by selling assets, including its US entertainment businesses.

Steve Jobs, Apple's co-founder and chief executive and other Apple representatives declined to comment, as did representatives of Universal Music Group and Vivendi Universal.

Universal, which earns about $ six billion in sales annually from artists such as Shania Twain, U2 and Luciano Pavarotti, seeks to raise $ seven billion this year by selling assets that probably would include some or all of its Universal film, television, theme park and music units, the daily said.

Jobs' pursuit of Universal comes at a time when Apple, known for its iMac desktop computer and other high-profile products, has been struggling to sustain its growth.

According to the daily, Jobs is apparently betting that music is finally on the verge of becoming a profitable presence on the Internet.

Apple has been quietly testing a service that some music business insiders believe could pave the way for widespread online distribution of songs.

Universal Music Group, which saw operating profit slide 23 per cent to $ 510 million last year, dominates the industry in 63 territories around the world and accounts for about one-quarter of all CD sales.

Vivendi first approached Jobs in December, sources said, not long after its music executives visited Apple's headquarters to view a demonstration of his new digital service.

Impressed by the service and Jobs' vision of music's future, Vivendi initially proposed selling him a minority stake in its record operation, sources said.

PTI