If Guy Hands Defaults On EMI, Could CitiGroup Sell EMI To Guy Hands?
January 28, 2011 at 4:29 AM (PT)
THE WALL STREET JOURNAL reports TODAY (1/28) that, "CITIGROUP INC., which is expected to seize control of EMI GROUP LTD. from beleaguered financier GUY HANDS in coming months, has already made contact with parties that could quickly snap up the historic music company -- and Mr. HANDS himself is even among them."
Two months from now, EMI is expected to default on its roughly $4.79 billion loan from CITIGROUP, which would leave the bank owning the storied record label. The actual exchange of power at EMI is expected to take place three months after a default, but sources told the JOURNAL that CITIGROUP is exploring ways to take control of the business sooner.
Who is on the short list of potential buyers?
THE JOURNAL has a shocker, writing "The most eye-popping name on the list of potential buyers is Mr. HANDS, whose TERRA FIRMA CAPITAL PARTNERS LP now owns EMI. Mr. HANDS is exploring ways that TERRA FIRMA can maintain an ownership stake in EMI, which under such a scenario might make a bid for rival WARNER MUSIC GROUP CORP., people familiar with the matter said."
The report has HANDS in discussions with CPP INVESTMENT BOARD, a Canadian pension-fund firm to raise capital.
Others in the mix to buy EMI reportedly include SIMON COWELL, SONY and WARNER MUSIC GROUP.