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KKR and Warner eye EMI break-up bid, reports
Wed, 08 Feb, 2012
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KKR and Warner eye EMI break-up bid, reports
Sun, 14 Mar 2010, 12:12:00
Private equity firm <b>KKR</b> is reported to be in talks with <b>Warner Music</b> to launch a break-up bid for Warner's troubled rival <b>EMI</b>. The Sunday Times is reporting that the two companies have met in recent weeks to discuss how they would structure a deal for EMI, which is expected to be put up for sale this summer. EMI lost £1.8bn in 2009 following a surge in illegal downloading and decline in album sales. A £1bn write-down included £661m on the value of its music and £135m of restructuring costs. The group last week made former ITV boss Charles Allen its new chairman and announced the departure of its chief executive after just 18 months. Allen has already spent 14 months as non-executive chairman at the company, responsible for acts like Coldplay and Russell Brand's latest squeeze Katy Perry. Guy Hands has had a difficult time since his Terra Firma investment vehicle paid £2.4bn for the business in 2007, backed by money from Citigroup. The private equity firm is currently in the process of suing the US bank, which it claims misled it during the acquisition just before the onset of the credit crunch. Hands is currently trying to persuade Terra Firma's investors to come up with £120m to help it avoid defaulting on its debt and to keep the company trading for another year. If it doesn't, Citigroup will take control.
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