EFTA02365088.pdf

From: David Stern Sent: Thursday, January 13, 2011 5:31 PM To: Jeffrey Epstein Subject: EMI Clock ticking for Hands to offload EMI 13 Jan 2011. Source: AltAssets As the battle of wills between Guy Hands and investment bank Citigroup =rags on, the future of EMI, the British record label at the centre of =he dispute, is no clearer. Terra Firma, the private equity group Hands runs, is estimated to have =ntil June to sell EMI before it technically defaults on its debts to =itigroup, leaving the investment bank to dispose of the business =tself. The company, whose back catalogue features big hitters from Nat King =ole to the Sex Pistols, has been valued at between £1.6bn and £1.8bn =€1.9bn to €2.2bn), but it is unlikely to survive in one piece. Last year Citi put forward a proposal, rejected by Hands, to split the =roup's music publishing arm from its recorded music business. Master =ights to that back catalogue may be its most valuable asset. Warner Music and BMG — an aggressively acquisitive label backed by =rivate equity behemoth KKR — are eyeing up slices of the company. But =hey may be as happy to buy from Citi as from Hands. If no buyer is found, the only way for the current owners to maintain =ontrol would be to inject further equity into the company. Terra has =lready recapitalised EMI to the tune of €194m (€233m) since 2008. But there is "no chance" of investors agreeing to another round of =efinancing, according to the Financial Times. With the music business decimated by internet piracy, EMI looks set to =alk the plank.=?xml version=.0" encoding=TF- 8"?> <!DOCTYPE plist PUBLIC "-//Apple//DTD PLIST 1.0//EN" "http://www.apple.com/DTDs/PropertyList-1.0.dtd"> <plist version=.0"> <clict> <key>date-last-viewed</key> <integer>0</integer> <key>date-received</key> <integer>1294939863</integer> <key>flags</key> <integer>8623750145</integer> <key>gmail-label-ids</key> <array> <integer>5</integer> <integer>18</integer> </array> <key>original-mailbox</key> <string>imap://[email protected]/%5BGmailcASD/All%20Mail</string> <key>remote-id</key> <string>127996</string> </dict> EFTA_R1_01360099 EFTA02365088 </plist> 2 EFTA_R1_01360100 EFTA02365089