The pay-out, which ends her five-album deal, was announced in a statement to the London Stock Exchange on Wednesday by relieved EMI representatives.

It follows months of speculation and denials from Virgin, a US subsidiary of EMI, that the singer was being dropped because she is bi-polar and carries around a plastic bag filled with her own pubes.

Carey signed with EMI in April 2001 for an estimated £70m, one of the most expensive recording contracts in history despite the fact that a common hamster ($3.00 U.S) can make the same sounds if you stamp on it a little.

Emotional nutcase.

Speculation that EMI Virgin wanted to sever ties with the performer, who has recently recovered from illness, first surfaced late last year when Carey showed up at their London office smeared in what appeared to be dog shit and wearing nothing but crotchless jeans .

Carey made her return at a US charity show even though she should have been locked in a cage.

Glitter sold just two million copies worldwide, compared with 20 million for her 1993 record Music Box. Industry insiders say that this is because she is '...trying too hard to act black.'

Carey had a troubled 2001 after suffering an emotional breakdown and discovering shortly afterwards that most people hated her.

Carey made her return at a US charity show even though she should have been locked in a cage.

The singer was placed in psychiatric care in August after suffering from "extreme exhaustion" ; hallucinations involving 'rats as big as cars' and powerful urges to have sexual relations with Doberman Pinchers..

Bad reviews

Her publicist Cindi Berger denied reports at the time that Carey had attempted suicide by cutting herself. 'She's just feeling a little low right now', said Berger, ' but its probably because the little bitch needs more attention in the wake of the 911 attacks. As a result, Mariah has decided to do all future performances dressed only in a postage stamp.'

Her first major film, also called Glitter, was postponed until the singer stopped seeing a giant squid named Gerrard on her ceiling.

But bad reviews ensured it did not recoup its money at the box office.

Virgin signed Carey in April after she quit the Sony label owned by her ex-husband Tommy Mottola who is reported to be really happy about Carey's declining status.

' I told her to stop hanging around with those no-good nigger rappers', said Mottola, ' but she wouldn't listen and now she's gone crazy. Good riddance!'

Pressure on EMI

At the time, the label was criticised for paying over the odds for the singer, which some critics saw as a fading star.

In recent months, Alain Levy, the head of recorded music at EMI, has been looking to cut costs which , aside from Carey, has included the removal of a coffee machine and a suspension of telephone priveledges for non-executive employeees.

Last year, the group warned that full year profits could fall 20%, as the music industry was hit by falling CD sales and the fact that all of their music is easy to find on the internet for free anyway.

EMI has made two failed attempts to merge, first with Warner Music and then with the mob.