Terra-Citi tensions escalate

MEANWHILE, BACK AT THE FRONT: As Roger Faxon breaks out the new-look EMI, tensions are escalating between Terra Firma and Citigroup, according to the Financial Times. Citi reportedly filed a motion to dismiss the case accusing the lender of misleading Guy Hands prior to his 2007 acquisition of EMI, leading Terra to respond with more detailed accusations. Hands and company now allege that Citi dealmaker David Wormsley claimed Cerberus Capital Management was also in the running, when the firm had actually dropped out. In response, Citi says, “Not a single analysis, presentation, minute, memo, email or other document corroborates Terra Firma’s manifestly fanciful claim that it entered into a £4bn transaction solely because of information allegedly conveyed by Wormsley.” (9/8a)