|EMI Considers Sale Or IPO
Posted: June 21, 2011
LONDON (AP) -- Struggling British music company EMI Group Ltd. says it is exploring the possibility of a sale or an initial public offering.
EMI, owned by Citigroup, says the board of directors of its holding company, EMI Group Global Ltd., is reviewing the future of the business and looking into "strategic alternatives," including recapitalization.
The company - home of the Beatles, Lily Allen and Norah Jones - was purchased by private equity firm Terra Firma in 2007 in a 4.2 billion-pound ($6.8 billion) acquisition financed with debt from Citigroup.
Terra Firma later said it had overpaid for the deal, and when it failed to pay its loans Citigroup acquired all its share capital in February.
EMI said Monday it would not disclose further developments until the board approves a strategic plan.