Hands lives to fight another day in court after Terra Firma wins appeal on EMI deal
Nikhil Kumar is The Independent's New York correspondent. He was formerly assistant editor on the foreign desk and has also done a variety of jobs on the city desk, where he wrote about markets, commodities and other business and economics topics.
Saturday 01 June 2013
A US appeals court has thrown out a 2010 ruling against a claim by Guy Hands that he had been tricked by Citigroup into overpaying for EMI, setting the stage for a fresh showdown between the private-equity mogul and the bank over the sale of the London-based music business.
Mr Hands’s Terra Firma Capital paid more than £4bn for EMI in 2007, at the height of the leveraged buyout bubble that popped when the credit crunch hit the financial sector.
The deal proved disastrous, and led to a bitter courtroom battle in which Mr Hands claimed he had been misled by David Wormsley, a high-profile Citigroup banker in London, into overpaying for the business. Citigroup helped finance the deal.
The allegation was rejected in a trial before US District Judge Jed Rakoff in 2010. Soon after, Citigroup took control of EMI and eventually broke up and sold the business.
However, yesterday the 2nd Circuit Court of Appeals ruled that Judge Rakoff had incorrectly instructed the jury in the original trial on the English legal provisions relevant to the case, and that the matter should therefore be retried.
Citigroup said it was hopeful that it would succeed once again when the case returns to court.
“The original verdict made clear that Terra Firma’s baseless accusations of fraud were simply an attempt to gain leverage in debt restructuring negotiations,” the bank said.
A spokesman for Terra Firma told Reuters: “We continue to believe that we have a strong claim, and with the jury instructions now resolved in our favour, we expect to prevail in any subsequent trial.”
- 1 Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
- 2 To help fuel their propaganda machine against the poor, our government has now decided to redefine the word 'welfare'
- 3 Halle Berry takes ex-boyfriend Gabriel Aubry to court for allegedly trying to make daughter look less African-American
- 4 Isis propaganda image showing 'abuse of Muslim woman by soldiers' is actually taken from Hungarian porn film
- 5 'You should come to my house and eat cheeses with me': 4-year-old sends adorable love letter to girl at school
Turkish President: 'Equality between men and women is against nature'
Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
Ferguson decision: Tea Party website mocks Michael Brown's family over T-shirt typo
Michael Brown shooting: Ten things we know – or know better – now the Ferguson grand jury's work is over
Isis propaganda image showing 'abuse of Muslim woman by soldiers' is actually taken from Hungarian porn film
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
Rochester by-election: Labour MP Emily Thornberry resigns after posting white van and England flags tweet
France 'blocks' Russian sailors from boarding a warship
The young are the new poor: Sharp increase in number of under-25s living in poverty, while over-65s are better off than ever
Revealed: How the world gets rich – from privatising British public services
iJobs Money & Business
£Attractive: Citifocus Ltd: High calibre individual with significant product d...
£Negotiable: Citifocus Ltd: Leading global bank seeks experienced credit analy...
£Attractive Package: Citifocus Ltd: High calibre individual with a high degree...
£Attractive: Citifocus Ltd: High calibre individual with superior academics an...