Day Three Of Guy Hands Vs. Citigroup Gets Testy
October 21, 2010 at 5:20 AM (PT)
It was day three in U.S. District Court in MANHATTAN YESTERDAY (10/20), with EMI owner GUY HANDS taking on CITIGROUP, the bank that funded the $4.71 billion in loans to finance the $6.7 billion EMI acquisition in 2007.
During TUESDAY's testimony (NET NEWS 10/19), HANDS claimed that CITIGROUP's DAVID WORMSLEY "tricked him into overpaying for EMI, a 113-year-old music company, in a 2007 auction."
YESTERDAY, HANDS said under cross-examination that "he couldn't cough up one shred of evidence to support his claim that his private-equity shop TERRA FIRMA was duped by CITIGROUP into ponying up more than $6 billion to acquire record label EMI three years ago," reports THE NEW YORK POST.
"Are you aware of any documents anywhere that reflect that you had a conversation with DAVID WORMSLEY?" CITIGROUP's lawyer THEODORE WELLS asked HANDS. "Are there any records of the facts ... by you or anyone else?" he asked during a reported seven-hour cross-examination. "As you sit on the witness stand, you cannot identify one single piece of paper in the corporate records that reflects that you had a conversation with DAVID WORMSLEY about his representation that CERBERUS was going to bid 262 [pence per share, on MONDAY, May 21st 2007]?" added WELLS.
"No, I'm not personally aware of any documents," HANDS answered.
"Isn't it true you were reluctant to bring this [case] because it is based on false accusations?" THE POST reports WELLS asked HANDS. "Isn't it true you brought this lawsuit because you wanted to blame someone else?"
HANDS denied WELLS' accusations, and continues to assert that several rival bidders dropped out in the days before the deadline for bids, including FORTRESS INVESTMENT, WARNER MUSIC GROUP and JPMORGAN CHASE's ONE EQUITY PARTNERS. HANDS said "that on the final weekend before the auction, Mr. WORMSLEY, whom he described as his friend and business associate, told him that CERBERUS remained in the auction and was bidding £2.62 per share."