Hands on shaky deck in his court battle over EMI



Two financiers and former friends, the Terra Firma founder Guy Hands and the Citigroup investment banker David Wormsley, are locked in a high-profile and embarrassing battle in the US district courthouse in Manhattan.

But Mr Hands has considerably more at stake.

In the case brought by Terra Firma against Citigroup over the private equity group's 2007 acquisition of the music company EMI, Mr Hands must convince a jury Mr Wormsley and Citigroup defrauded Terra Firma.

In court he has alleged that, just before the private equity company agreed to the £4.2 billion (Dh24.74bn) buyout, Mr Wormsley told him a higher bid from a rival company, Cerberus Capital Management, was in the pipeline.

Citigroup has denied any wrongdoing.

If he succeeds, Mr Hands will be able to pay down some of EMI's £3bn debt and recoup some of the vast amount of his own cash, reportedly between 60 and 70 per cent of his wealth, that he sank into the loss-making company.

He may also save some face with his own investors, who provided £1.6bn to help buy EMI, if he can prove Citi was to blame for his investment in such a dud.

If Mr Hands loses, Terra Firma may be forced to hand over EMI to its creditors at Citigroup, which advised Terra Firma and financed the deal, and the high-profile trial will have only cemented the reputation of Mr Hands as a rich former banker who wants to pass the buck for a terrible investment decision.

If Citigroup loses, it could end up paying a large amount of damages to Terra Firma. While the amount of damages the private equity company is pursuing has not been disclosed, some commentators believe it could be more than US$5bn (Dh18.36bn).

And after being savaged for receiving government bailouts at the peak of the financial crisis, and for the generous bonuses it has handed to employees since, the bank will not be delighted by another blow to its reputation.

But Citigroup will not be too concerned about the possibility of collateral damage to its leveraged finance business at a time when private equity companies are increasingly reliant on securing finance from their banks.

The volume of leverage buyouts has reached $133bn so far this year, Bloomberg data show - a long way short of the volumes registered at the peak of the market, but more than twice the amount recorded in the same period last year.

The size of individual deals is also on the rise.

The buyout company Carlyle Group, which made one of the biggest leveraged buyouts this year when it agreed buy the US nutritional supplement company NBTY for about $3.8bn in July, has just announced another big purchase at $3.9bn, this time of the US telecommunications equipment company CommScope. Most tellingly, for the first time since 2007, banks are happier to increase the amount of loan and high-yield bond financing committed to individual buyouts, which means smaller equity contributions are necessary.

Private equity companies are again busy taking equity out of their businesses, using new leveraged finance transactions to return cash directly to their battle-weary investors through dividend recapitalisations.

In short, Terra Firma's case is hardly going to encourage a herd of disgruntled private equity buyers to launch copycat lawsuits, blaming their bankers for the highly leveraged deals they made in the boom, when these buyers need the same banks to provide cash for leveraged deals they are making now.

But this case could dissuade banks from lending to Terra Firma in the future. And the EMI losses, the result of one of the most ill-timed buyouts ever, could dissuade investors from trusting Terra Firma with their money ever again.

Win or lose, Guy Hands is standing on distinctly shaky ground.

The biog

Favourite films: Casablanca and Lawrence of Arabia

Favourite books: Start with Why by Simon Sinek and Good to be Great by Jim Collins

Favourite dish: Grilled fish

Inspiration: Sheikh Zayed's visionary leadership taught me to embrace new challenges.

The biog:

Languages: Arabic, Farsi, Hindi, basic Russian 

Favourite food: Pizza 

Best food on the road: rice

Favourite colour: silver 

Favourite bike: Gold Wing, Honda

Favourite biking destination: Canada 

ENGLAND SQUAD

For first two Test in India Joe Root (captain), Jofra Archer, Moeen Ali, James Anderson , Dom Bess, Stuart Broad , Rory Burns, Jos Buttler, Zak Crawley, Ben Foakes, Dan Lawrence, Jack Leach, Dom Sibley, Ben Stokes, Olly Stone, Chris Woakes. Reserves James Bracey, Mason Crane, Saqib Mahmood, Matthew Parkinson, Ollie Robinson, Amar Virdi.

Cherry

Directed by: Joe and Anthony Russo

Starring: Tom Holland, Ciara Bravo

1/5

MATCH INFO

Barcelona 4 (Messi 23' pen, 45 1', 48', Busquets 85')

Celta Vigo 1 (Olaza 42')

2025 Fifa Club World Cup groups

Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

Group D: Flamengo, ES Tunis, Chelsea, Leon.

Group E: River Plate, Urawa, Monterrey, Inter Milan.

Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.

Group G: Manchester City, Wydad, Al Ain, Juventus.

Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.

Richard Jewell

Director: Clint Eastwood

Stars: Paul Walter Hauser, Sam Rockwell, Brandon Stanley

Two-and-a-half out of five stars 

At Everton Appearances: 77; Goals: 17

At Manchester United Appearances: 559; Goals: 253

Gender equality in the workplace still 200 years away

It will take centuries to achieve gender parity in workplaces around the globe, according to a December report from the World Economic Forum.

The WEF study said there had been some improvements in wage equality in 2018 compared to 2017, when the global gender gap widened for the first time in a decade.

But it warned that these were offset by declining representation of women in politics, coupled with greater inequality in their access to health and education.

At current rates, the global gender gap across a range of areas will not close for another 108 years, while it is expected to take 202 years to close the workplace gap, WEF found.

The Geneva-based organisation's annual report tracked disparities between the sexes in 149 countries across four areas: education, health, economic opportunity and political empowerment.

After years of advances in education, health and political representation, women registered setbacks in all three areas this year, WEF said.

Only in the area of economic opportunity did the gender gap narrow somewhat, although there is not much to celebrate, with the global wage gap narrowing to nearly 51 per cent.

And the number of women in leadership roles has risen to 34 per cent globally, WEF said.

At the same time, the report showed there are now proportionately fewer women than men participating in the workforce, suggesting that automation is having a disproportionate impact on jobs traditionally performed by women.

And women are significantly under-represented in growing areas of employment that require science, technology, engineering and mathematics skills, WEF said.

* Agence France Presse

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Analysis

Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more

Teachers' pay - what you need to know

Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:

- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools

- average salary across curriculums and skill levels is about Dh10,000, recruiters say

- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance

- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs

- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills

- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month

- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues

'Munich: The Edge of War'

Director: Christian Schwochow

Starring: George MacKay, Jannis Niewohner, Jeremy Irons

Rating: 3/5

The specs

Engine: 2.0-litre four-cylinder turbo

Power: 178hp at 5,500rpm

Torque: 280Nm at 1,350-4,200rpm

Transmission: seven-speed dual-clutch auto

Price: from Dh209,000 

On sale: now

Why are you, you?

Why are you, you?
From this question, a new beginning.
From this question, a new destiny.
For you are a world, and a meeting of worlds.
Our dream is to unite that which has been
separated by history.
To return the many to the one.
A great story unites us all,
beyond colour and creed and gender.
The lightning flash of art
And the music of the heart.
We reflect all cultures, all ways.
We are a twenty first century wonder.
Universal ideals, visions of art and truth.
Now is the turning point of cultures and hopes.
Come with questions, leave with visions.
We are the link between the past and the future.
Here, through art, new possibilities are born. And
new answers are given wings.

Why are you, you?
Because we are mirrors of each other.
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Together we are more powerful than we know.
We connect, we inspire, we multiply illuminations
with the unique light of art.

 Ben Okri,

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The Brutalist

Director: Brady Corbet

Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn

Rating: 3.5/5

Fixtures

Sunday, December 8, Sharjah Cricket Stadium – UAE v USA

Monday, December 9, Sharjah Cricket Stadium – USA v Scotland

Wednesday, December 11, Sharjah Cricket Stadium – UAE v Scotland

Thursday, December 12, ICC Academy, Dubai – UAE v USA

Saturday, December 14, ICC Academy, Dubai – USA v Scotland

Sunday, December 15, ICC Academy, Dubai – UAE v Scotland

Note: All matches start at 10am, admission is free

COMPANY%20PROFILE
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A State of Passion

Directors: Carol Mansour and Muna Khalidi

Stars: Dr Ghassan Abu-Sittah

Rating: 4/5

PREMIER LEAGUE FIXTURES

All times UAE ( 4 GMT)

Saturday
West Ham United v Tottenham Hotspur (3.30pm)
Burnley v Huddersfield Town (7pm)
Everton v Bournemouth (7pm)
Manchester City v Crystal Palace (7pm)
Southampton v Manchester United (7pm)
Stoke City v Chelsea (7pm)
Swansea City v Watford (7pm)
Leicester City v Liverpool (8.30pm)

Sunday
Brighton and Hove Albion v Newcastle United (7pm)

Monday
Arsenal v West Bromwich Albion (11pm)

The specs

Price, base / as tested Dh1,100,000 (est)

Engine 5.2-litre V10

Gearbox seven-speed dual clutch

Power 630bhp @ 8,000rpm

Torque 600Nm @ 6,500rpm

Fuel economy, combined 15.7L / 100km (est) 

The specs: 2018 Nissan 370Z Nismo

The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
​​​​​​​Fuel consumption, combined: 10.5L / 100km

Results

4pm: Maiden; Dh165,000 (Dirt); 1,400m
Winner: Solar Shower; William Lee (jockey); Helal Al Alawi (trainer)

4.35pm: Handicap; Dh165,000 (D); 2,000m
Winner: Thaaqib; Antonio Fresu; Erwan Charpy.

5.10pm: Maiden; Dh165,000 (Turf); 1,800m
Winner: Bila Shak; Adrie de Vries; Fawzi Nass

5.45pm: Handicap; Dh175,000 (D); 1,200m
Winner: Beachcomber Bay; Richard Mullen; Satish Seemar

6.20pm: Handicap;​​​​​​​ Dh205,000 (T); 1,800m
Winner: Muzdawaj; Jim Crowley;​​​​​​​ Musabah Al Muhairi

6.55pm: Handicap;​​​​​​​ Dh185,000 (D); 1,600m
Winner: Mazeed; Tadhg O’Shea;​​​​​​​ Satish Seemar

7.30pm: Handicap; Dh205,000 (T); 1,200m
Winner: Riflescope; Tadhg O’Shea;​​​​​​​ Satish Seemar.

British Grand Prix free practice times in the third and final session at Silverstone on Saturday (top five):

1. Lewis Hamilton (GBR/Mercedes) 1:28.063 (18 laps)

2. Sebastian Vettel (GER/Ferrari) 1:28.095 (14)

3. Valtteri Bottas (FIN/Mercedes) 1:28.137 (20)

4. Kimi Raikkonen (FIN/Ferrari) 1:28.732 (15)

5. Nico Hulkenberg (GER/Renault)  1:29.480 (14)

FIXTURES

All kick-off times UAE ( 4 GMT)
Brackets denote aggregate score

Tuesday:
Roma (1) v Shakhtar Donetsk (2), 11.45pm
Manchester United (0) v Sevilla (0), 11.45pm

Wednesday:
Besiktas (0) v Bayern Munich (5), 9pm
Barcelona (1) v Chelsea (1), 11.45pm

Places to go for free coffee
  • Cherish Cafe Dubai, Dubai Investment Park, are giving away free coffees all day. 
  • La Terrace, Four Points by Sheraton Bur Dubai, are serving their first 50 guests one coffee and four bite-sized cakes
  • Wild & The Moon will be giving away a free espresso with every purchase on International Coffee Day
  • Orange Wheels welcome parents are to sit, relax and enjoy goodies at ‘Café O’ along with a free coffee