Under-pressure UK music group Sanctuary has received a takeover approach from smaller rival MAMA.
Beyonce is on Sanctuary's roster of music artists
Sanctuary said the "unsolicited approach from MAMA may or may not lead to an offer for the company".
MAMA, which manages bands including Franz Ferdinand, said it had made an all-share proposal but had not received a "meaningful response" from Sanctuary.
It said it would prefer to work with Sanctuary, but might proceed with a bid without the firm's support.
In June, Sanctuary warned losses would be wider than expected this year, after poor trading at its recorded music arm.
Frank Presland, who took over after the sacking of chief executive Andy Taylor, said the firm would make a pre-tax loss of £17m to £22m in the year to 30 September.
Sanctuary said the majority of the loss would come from one-off exceptional items, including restructuring costs.
Sanctuary Records is the world's largest independent music group.
As well as releasing music from artists including Morrissey and The Strokes, Sanctuary manages Destiny's Child, Iron Maiden, Groove Armada and other acts.