The Battle Over EMI Heads To Court Today
October 18, 2010 at 4:08 AM (PT)
TODAY (10/18) is the day EMI owner and TERRA FIRMA CEO GUY HANDS and CITIGROUP INC. begins in a NEW YORK courtroom over the disputed $6.5 billion takeover of EMI (NET NEWS 10/14).
HANDS' equity firm took over the music label in a highly leveraged deal largely financed by CITIGROUP in 2007. U.K.'s THE GUARDIAN reports the "£4.2bn deal turned the best of friends into bitter enemies," as HANDS and CITIBANK's DAVID WORSMLEY "were once inseparable."
The lawsuit by HANDS claims that WORSMLEY, "tricked him into acquiring music company EMI for £4.2bn by pretending another buyer was in the frame."
So HANDS is alleging fraud; CITIGROUP says the allegations are baseless. That will be what NEW YORK Judge JED RAKOFF and a jury of six men and women will hear TODAY.