July 2 (Reuters) - Hipgnosis Song Management (HSM) said

on Tuesday founder Merck Mercuriadis would step down as its

chairman once the proposed acquisition of music investor

Hipgnosis Songs Fund ( HPGSF ) by a firm owned by

Blackstone-managed funds gets completed.

Private equity firm Blackstone is a majority

shareholder in HSM, which manages artists and songwriters for

Hipgnosis Songs Fund ( HPGSF ).

In June, Blackstone said its takeover proposal for Hipgnosis

Songs Fund ( HPGSF ) would be its final for the London-listed music rights

owner.

Music industry veteran Mercuriadis had stepped down as the

CEO of HSM, the company said in February, to take on the newly

created role of chairman.