LOS ANGELES (AP) _ British media conglomerate Thorn EMI is negotiating to either buy or make a distribution deal with Geffen Records, one of the few remaining independent U.S. record companies.

Industry sources have speculated the deal could be worth as much as $750 million, the Los Angeles Times reported in today's editions.

''We can't confirm or deny whether there is an agreement ... (but) we have been talking with them. Mr. Geffen has acknowledged that,'' said Sharon Christians, director of corporate affairs for Thorn EMI in London.

David Geffen, who in the past has denied seeking a buyer, confirmed Thorn had ''made me an offer.'' But he added, ''that's hardly a deal.''

Geffen, 46, said he is still talking with Time Warner Inc.'s music division, which currently manufactures and distributes his company's records for half the profit.

The Times quoted unnamed sources as saying the agreement has been held up because Geffen wants all of Thorn EMI's North American record, distribution and publishing concerns reporting directly to him.

The newspaper also quoted an unnamed investment banking official as saying that one of London's largest investment houses has been hired to oversee Thorn EMI's deal with Geffen.

Artists who work with the West Hollywood-based record company include Cher, Guns N' Roses, Whitesnake and Aerosmith.

Thorn EMI, parent company of the Capitol Records label, has been trying to expand its music portfolio in recent months in the face of strong competition and a growing overseas market. It purchased a 50 percent stake in Chrysalis records last year.

The conglomerate's pretax profit for the six months ending Sept. 30, 1989 was $171 million, up 12 percent from the previous period.

Thorn EMI officials recently confirmed they are close to making a deal to buy a 50 percent stake in Hungary's state recording company, Hungaroton, for $15 million.