EMI Owner Sues Citigroup, Seeks Investors
December 14, 2009 at 4:58 AM (PT)
EMI owner TERRA FIRMA is suing CITIGROUP, claiming that it "misrepresented fundamental facts" in the 2007 deal for the label by falsely claiming the existence of other bidders, according to BBC NEWS. TERRA FIRMA paid $6.5 billion for EMI; it says in its suit, filed in NEW YORK, that CITIGROUP told it that CEREBUS CAPITAL MANAGEMENT was in the bidding after CEREBUS actually withdrew from the auction.
CITIGROUP called the suit "without merit" and said it would "vigorously" defend itself.
Looking For Investment Help
Reports in THE GUARDIAN indicate that TERRA FIRMA is also looking for outside investors to help it operate EMI, which is saddled with $4.29 billion in debt. TERRA FIRMA intends to retain majority control of the label, with GUY HANDS remaining as Chairman, if investors are brought in; the label is presently profitable as an operating business but is dealing with high debt and borrowing costs.