Participants in the auction that led to Terra Firma’s disastrous £4bn acquisition of EMI are challenging the account of events set out in a lawsuit filed last Friday by the buy-out firm against Citigroup. Guy Hands, Terra Firma’s chairman, alleged that Citi fraudulently misrepresented the position of other bidders on the eve of the bid deadline in the 2007 auction, knowing they had dropped out but still encouraging him to make a 265p binding bid. Three auction participants told the FT that Warner Music was still conducting due diligence on the day of the deadline.

This entry was posted by Gwen Robinson on Tuesday, December 15th, 2009 at 5:18 and is featured in The 6am Cut London (15 Dec 2009) . Tagged with citi, guy hands, terra firma, warner music. Edit this entry.