Citigroup loses appeal to drop EMI suit
Citigroup has lost its appeal to dismiss Terra Firma's lawsuit, as US District Judge Jed Rakoff in Manhattan rejected the bank's argument that dispute should be held in a UK court.
Terra Firma had accused Citigroup of misrepresenting the fact that another firm, Cerberus, was still in the bidding process for music company EMI. Terra Firma has claimed that the bank stated the private equity firm would lose its bid unless it raised its offer. EMI is known as one of Terra Firma's most ill-timed investments, as it has suffered substantially during the downturn, being unable to meet its debt covenants.
Terra Firma bought EMI for £4bn just before the start of the downturn in 2007.
According to reports, a trial has been set for 18 October.
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