Guy Hands sues Citigroup over EMI

Guy Hands's private equity group Terra Firma it has filed a lawsuit against CitiGroup, claiming it paid "a fraudulently inflated price" for the music group EMI.

Guy Hands's private equity group Terra Firma bought out the music group EMI for £4bn at the peak of the private-equity boom in 2007, with a £2.5bn loan from Citigroup. Now it has filed a lawsuit against the bank. The group, said Terra Firma, had "paid a fraudulently inflated price for EMI" because Citi allegedly claimed that a rival bidder was still in the auction when it had in fact pulled out.

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