Alan McGee, the former head of Creation Records, is to float his new internet music venture with the backing of two directors from Knutsford, the high-profile former bidder.
Mr. McGee, renowned for discovering the rock band Oasis and turning Creation into one of the UK's leading independent record labels, has appointed financial advisers to co-ordinate the AIM flotation of Poptones Records.
Knutsford directors Michael Edelson, also deputy chairman of Manchester United football club, and Julian Richer, the founder of the Richer Sounds hi-fi chain, will become non-executive directors. Shareholders include Robert Devereaux, the chairman of Virgin Film & Records. News of the float first broke on internet website Sharecast.com.
Mr McGee surprised the music world in November last year by announcing he was leaving Creation to launch his own net label. During his time at the head of Creation, the 39-year-old became one of the most influential people in the UK music industry and an adviser to Tony Blair - although he has since distanced himself from New Labour.
The bands he discovered included the Jesus and Mary Chain, Primal Scream, Super Furry Animals and Oasis.
Poptones Records will sell at traditional stores and via internet retailers. Mr McGee's decision to team up with Mr Richer and Mr Edelson will give him useful access to a wide pool of City investors.
However, it is unclear what support the venture will gain from retail investors who followed the Knutsford story. Shares in the company surged last autumn when Mr Edelson, the company chairman, recruited a team led by Mr Richer to launch a bid on a beleaguered high street retailer.
Knutsford's directors - including the Conservative minister Archie Norman and property entrepreneurs Nigel Wray and Nick Leslau - struggled to close a deal.
Shares fell, and the company reverted to its former role as an American financial information and marketing group.
When he quit Creation Mr McGee said: "The future for me is multimedia; the future is not being one-dimensional and having one record company. It's worked for the last 25 years but it doesn't make sense any more.
"You have to be in lots of different areas to give yourself leverage, if you're not in all these businesses at the same time you're going to be left behind."
