Apollo Global not planning HMV takeover-source

LONDON, Jan 14 (Reuters) - U.S. private equity firm ApolloGlobal Management LLC is not planning a takeover of HMV after buying some of the struggling Britishentertainment retailer's debt, a source familiar with thesituation told Reuters. HMV has struggled in declining music, DVD and games marketsand in December warned that a poor start to vital Christmastrading meant a breach of its banking agreements was likely - asituation that would leave it at the hands of its lenders. Media speculation that Apollo was preparing a takeover ofthe firm then arose after it bought 6 percent of HMV's debt lastmonth, with some analysts expecting further deals to follow. However, a source familiar with the situation told Reuterson Monday that this was not the case. "It is not Apollo's intention to make any bid for theoutstanding bank debt of the company," a source said, addingApollo owned 6 percent of HMV's debt, rather than the 10 percentwidely reported. Apollo declined to comment. HMV had said a late Christmas sales surge was critical to helping avoid a banking breach. But it sparked worries last week that this had notmaterialised when it launched a month-long discounted sale onsome products, sending its shares falling again. The firm is expected to publish a Christmas tradingstatement in the coming weeks. HMV's underlying net debt stoodat 176.1 million pounds ($284 million) at its half year to Oct.27, up from 163.7 million a year earlier. ($1 = 0.6202 British pounds) (Reporting by Neil Maidment; Editing by David Cowell)