Terra Firma appeals Citigroup EMI ruling

12 January 2011

Private equity company Terra Firma has sought leave to appeal over its failed court case against financial giant Citigroup, claiming it was misled by the bank into buying struggling record label EMI.

Owner Guy Hands this week submitted documents to a US court relating to the case, which a source told the Daily Telegraph "could run for years". Terra Firma acquired EMI for £4.2 billion ($6.58 billion) in August 2007.

"Citigroup's conduct in the EMI transaction was entirely proper. We are confident the appeals court will confirm that Terra Firma received a fair trial," a spokesman for Citigroup stated in response to the news.

EMI, which boasts major artists including Kylie Minogue and Katy Perry on its roster, reported pre-tax losses of £1.75 billion for the financial year ending in March 2009. Citigroup provided £2.6 billion to fund the Terra Firma buyout.

Last weekend, the Observer reported that control of the label could be handed over to Citigroup within a matter of weeks for around £1.5 billion.

By Claire Archer

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