Universal Music Group is continuing talks with Citigroup today in hopes of settling a host of issues that have hindered a deal for EMI’s recorded-music business.

Vivendi Group’s Universal, which had last offered $1.2 billion for EMI’s music division, appears to be the only suitor in active talks — though a bid from Len Blavatnik’s Warner Music Group, since revoked, was higher at $1.5 billion.

Universal, run by Lucian Grainge, is thrashing out such issues as pension liabilities, and whether it would have to take on problems related to EMI’s former ownership of the defunct HMV music store chain.

EMI houses such acts as Katy Perry and Coldplay. During its recent financial troubles, EMI lost two acts, The Rolling Stones and UK singer Robbie Williams. According to British press reports, David Bowie is also exploring an EMI exit.

Universal declined to comment, but execs sought to play down expectations that today’s talk would cinch a deal.

Universal accounts for around 10 percent of Vivendi’s pretax earnings; third-quarter results are due Nov. 16.

A Universal acquisition of EMI would hand Grainge global dominance, but it might not be all positive.

UBS analyst Polo Tang, who follows Vivendi, noted that while there are signs of a turnaround in the music business, “we think the timing is poor given the limited credit-rating headroom that Vivendi has.”

While rumors have swirled recently that Vivendi is mulling a sale of Universal, its actions say otherwise.

However, Vivendi’s acquisition of two ticketing companies, See Tickets in the UK, and Digitick, in France and Universal’s bid for EMI suggest instead that it is doubling down.

Citi is also selling the much bigger EMI publishing unit, where both Sony and KKR-backed BMG Rights bids are around $2 billion.