Terra Firma's EMI Loses Citigroup Lawsuit

Investment bank Citigroup did not trick private equity company Terra Firma into paying an inflated price for EMI, a US jury has ruled.

The company bought the record label for £4.2bn in 2007, with loans over $2bn from Citi.

Terra Firma’s Guy Hands had argued that he was mislead into believing other companies were interested in acquiring EMI.

He also claimed that the company was only worth three-quarters of what he paid for it.

Conversations between Hand and Citi’s David Wormsley were central to the outcome of the case, reports BBC News.

Terra Firma may now be forced to handover EMI, which is home to the likes of Coldplay, to Citi.