Citigroup's Wormsley Testifies Guy Hands Had 'Immediate Regrets' Over EMI Purchase
October 28, 2010 at 4:15 AM (PT)
CITIGROUP banker DAVID WORMSLEY was back on the stand in a MANHATTAN courtroom YESTERDAY (10/27), and testified that TERRA FIRMA CEO GUY HANDS "had regrets that the acquisition was going to prove a bust shortly after it was inked in AUGUST of that year because aspects of the British company's recorded music business were performing surprisingly poor," reports THE NEW YORK POST
The trial's argument is over the circumstances surrounding the purchase of EMI in 2007. HANDS is claiming he was hoodwinked by CITIGROUP when he purchased EMI for $6.7 billion.
"Did there ever come a time when Mr. HANDS confided in you in respect to the purchase of EMI?" CITIGROUP's lawyer TED WELLS asked WORMSLEY.
"Yes," the WORMSLEY replied, adding HANDS was immediately worried, because what he found when he got into EMI, wasn't what he expected to find while he was sizing up the company.
THE POST writes, "In one e-mail exchange on NOV. 21st, 2007, WORMSLEY described the relationship between HANDS and CITI around the financing as 'pretty hostile.' 'Expect fireworks from GUY in the coming week,' WORMSLEY e-mailed one high-level CITI official. 'The truth is we funded a poor business too aggressively,' WORMSLEY wrote.
Courtroom observers expect the trial to wrap up late next week.