Hands Willing to Break Up EMI

SPLITSVILLE NIXED: Guy Hands was ready to break up EMI Group into its two parts in order to save the company, the Wall Street Journal reports, citing court documents filed Friday by Citigroup as part of its legal battle with Terra Firma. On Nov. 5, Hands sent a letter to Citi exec Chad Leat proposing the separation and recapitalization of EMI Music and EMI Music Publishing. “We believe that we are in agreement in relation to a number of the key components of an acceptable solution, including the need to separate the two businesses,” Hands wrote. Leat responded five days later, stating: "We do not see sufficient value in the proposals you had put forward and…they do not represent an acceptable basis for any continuing discussions about the recapitalization of the Group at this time… If this appears blunt, I apologize.” (2/15a)