Private equity firm Terra Firma Capital Partners acquired The EMI Group for $4.9 billion in 2007. However Terra Firma feels that Citigroup Inc. (NYSE:C) duped them by saying that there is a bidding war happening for the music company. Terra Firma believes that all potential bidders had dropped out including Cerberus Capital Management.
Thinking that there were other buyers, Terra Firma raised their bid for EMI. And the private equity firm wants damages related to the increased bid from Citigroup. Citigroup Inc. spokeswoman Danielle Romero-Apsilos said that the lawsuit is happening without merit and the company plans to defend themselves vigorously.