Hands' Citi fraud case thrown out

AN AMERICAN jury last night rejected a fraud case against Citigroup brought by financier Guy Hands over his £4 billion purchase of the EMI music company in 2007.

The decision in the US district court in Manhattan could force Hands' private equity firm, Terra Firma, to relinquish EMI to Citigroup, the main creditor bank that provided 2.6bn in loans for the acquisition.

The jurors deliberated over two days before reaching the verdict, concluding a roughly three-week trial.

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EMI has struggled under the weight of its debt, and the deal became a symbol of the excesses of leveraged buyouts.