Hands accuses his one-time adviser, regularly ranked as the top mergers and acquisitions banker in the U.K., of misleading him as the EMI sale was about to close, claiming Wormsley “deliberately” failed to tell him a rival bidder, Cerberus, had pulled out of the auction before the deal was done.
Hands insists if he’d known there was no competition, he never would have upped his offer to £4 billion. Citigroup insists Wormsley didn't know Cerberus had dropped out. He also points to the bank’s conflict of interest, considering they would collect a hefty fee for acting as adviser to EMI’s then-owners, while providing debt as a lender to Hands’ group.
At the time, Terra Firma seemed to have no problem with Citigroup's dual role, but now, in the wake of a post-credit crunch, Hands is insisting it’s a conflict of interest. The trial will be held in
Terra Firma's lawyers have allegedly discovered hundreds of internal Citigroup e-mails that are damaging to Wormsley and his colleagues.
“I assure you this advice is not motivated by money,” wrote Wormsley in one e-mail to the Terra Firma boss. “I know it may seem strange to advise you how to handle the banks,” he added, “but I am incapable of not trying to get you the best possible outcome.”
At the same time, he assured EMI’s management: “I am absolutely certain that I can deliver very serious added value in any discussion with Guy.”
Both Hands and Wormsley say they will testify at the trial. Insiders claim the legal action is Terra Firma’s way of renegotiating its debt load with Citigroup, but there is no sign yet of any such compromise.
EMI has recently scored chart-topping singles in the
LIVE NATION POSTS (ANOTHER) RECORD QUARTER
More butts in seats than ever before. (5/3a)
| ||
THE NEW UMG
Gosh, we hope there are more press releases.
TIKTOK BANNED!
Unless the Senate manages to make this whole thing go away, that is.
THE NEW HUGE COUNTRY ACT
No, not that one.
TRUMP'S CAMPAIGN PLAYLIST
Now 100% unlicensed!
|