Terra Firma, Citi Suit over EMI Acquisition Kicks Off
Report: Bank eyes 'bloodbath' for Terra boss Hands
NEW YORK - Guy Hands-led private equity firm Terra Firma is starting a courtroom showdown here against Citigroup Monday, in which it will argue it ended up overpaying in its $6.7 billion acquisition of music company EMI in 2007 due to Citi.
In addition to money, Hands' reputation is also on the line as Citi lawyers plan to destroy his rep as a dealmaker, the New York Post reported, citing sources.
"We will not have done our job if this isn't a bloodbath," one person familiar with Citi's legal strategy told the Post.
Terra Firma alleges that Citi banker David Wormsley duped the firm into overpaying for the record company by saying that another private equity firm, Cerberus Capital, may outbid Hands for EMI.
Citi's lawyers plan to counter that Terra Firma undertook an exhaustive due diligence process and that Hands continued a friendly relationship with Wormsley after the deal.