Monday, May 10, 2010

EMI decision day

Today's the day when Terra Firma will ask its investors to pour more cash into the mismanaged black hole of EMI in order to persuade Citi to let them keep going.

Citi will decide on Friday if they're going to call in the loans; Guy Hands and his team believe that investors have, in principle, agreed to let him spend more of their money while hoping that Robbie Williams might do something to save them all. This week, it's about getting written confirmation of that.

Meanwhile, Sony are rumoured to be tying a bib round their neck and getting ready to feast upon EMI's carcass:

Head of Sony Music Rolf Schmidt-Holz said: “We are in a position that allows us to seize every opportunity in the market – including EMI.”

Not good news for Hands, as Citigroup have already indicated they might reject Terra Firma's plans if they don't feel they're in the best interests of EMI. And a cash-rich alternative owner might tip the balance.