By Don Waller

HOLLYWOOD -- When music mogul Clive Davis unveils his new joint venture with BMG Entertainment -- a $ 100 million-plus, multi-year deal that the Arista Records founder would like to wrap up before he leaves on vacation June 21 -- it will mark the end to one of the most public power struggles in the history of the record biz.

The 67-year-old Davis increasingly found himself at odds with BMG toppers, notably prexy-CEO Strauss Zelnick, over his future role at the company: Toppers wanted him to gracefully move upstairs while Davis preferred to maintain a more hands-on role at the diskery.

Relations grew so frosty between the two over the last six months that Davis very publicly began to shop his services to the other Big Four distribs.

But despite Davis' disagreements with BMG honchos, the two sides finally agreed on one thing: staying under the same corporate umbrella was the best thing for all parties:

BMG gets to keep Davis, whose hit-making track record is unparalleled, as well as the label he founded.

Sparked by the stunning comeback of '60s guitar-hero Carlos Santana's "Supernatural" album, Arista is expected to generate $ 500 million in sales in fiscal 1999 -- the fifth consecutive year that the label has bested its year-previous sales record.

LaFace Records co-founder Antonio "L.A." Reid, who recently replaced Davis as Arista's topper, gets to craft his future vision for the label with his own executive team.

Davis gets to take some of the artists and label execs with him to his new company and to act as a hands-on recordman, rather than just another suit on a corporate board.

More important, Davis gets the funding from BMG to develop film and TV projects as well as an equity stake in the new venture, something he gave up several years ago at Arista.

So what shape can we expect Davis' new "instant major" label to take?

While negotiations are still ongoing, the artist roster at Davis' new label is likely to be a mix of familiar and unfamiliar names.

Arista vets Barry Manilow, Aretha Franklin and Kenny G have been mentioned as strong prospects to join the Davis team, with either Santana or, perhaps more likely, Whitney Houston, serving as the proverbial jewel in the crown.

Davis also is said to be courting several major artists from rival record companies who are nearing the end of their current contracts.

Davis' executive team will be built around radio promotion maestro (and 14-year Arista vet) Richard Palmese, former Arista exec VP-G.M. Charles Goldstuck and former Arista senior veepee of worldwide marketing and sales Tom Corson.

Arista senior VP of finance Alan Newham and a trio of A&R execs, Keith Naftaly, Hosh Gureli and Peter Edge, are also likely to segue to Davis' new operation.

The company is also likely to get involved in the talent management biz, Internet ventures and film and TV projects.

Arista's previous film involvement stretches from Carly Simon's Oscar-winning song "Let the River Run" (from the pic "Working Girl") to the soundtrack of the Whitney Houston-Kevin Costner hit "The Bodyguard" that sold 16 million copies.

Arista also issued the platinum or platinum-plus soundtracks to "Waiting to Exhale," "The Preacher's Wife," "Boomerang," "Soul Food" and "Ghostbusters."

While Davis' ego is almost as storied as his work ethic and attention to detail, he's said to be somewhat reluctant to attach his name to the new company, which still doesn't have a name and is unlikely to release any records before September.

Either way, his lifestyle -- first person in the office-last person out, with occasional stops for memorably lavish parties -- will remain the same.

"There's no detail too small for Clive. He looks at every ad, every press release. He's very hands-on, right down to deciding what the color of the tablecloth should be at the party," says one exec who worked with Davis for a decade.

Davis, who began his record biz career as an attorney with Columbia Records in 1960, became VP-G.M. of the label in '66 and served as prexy from 1967 to 1974, when he was ousted for allegedly misusing corporate funds.

Later that year, armed with a $ 10 million stake from Columbia Pictures Industries, Davis cherry-picked the roster of Bell Records, rechristened the result Arista -- after his high school honor society -- and sold it to BMG in 1979.

Davis' ability to link his companies with moneymaking entrepreneurial R&B labels is one key to his continued success: From Kenny Gamble & Leon Huff's Philadelphia Intl. label in the early '70s to Kenneth "Babyface" Edmonds & Antonio "L.A." Reid's LaFace in the late '80s to Sean "Puff Daddy" Combs' Bad Boy Entertainment in the late '90s, Davis knows the hitmakers.