From best friends to bitter enemies

Dear Readers, 


Money and Friends are like water and oil : you cannot mix them. And the short story that I am unveiling in my post is no exception.


They drank and ate together at London's finest restaurants. They spent week ends togethers and travelled together with their wives and colleagues. David Wormsley, a senior banker at Citigroup who advised Guy Hands- the billionaire private equity baron- on deals worth $50 over 10 years, were very good friends. So close were the partners in crime that David Wormsley sometimes offered advice to Guy Hand's Terra firm for free. They were dubbed " the siamese twins " and they  " got on like a house on fire ". But things change ... 


Now, Guy Hands is suing Wormsley, affectively known as "the worm" by claiming that he tricked him into acquiring EMI (the music company) for $6.2bn by pretending another buyer was bidding for the company. In more simple terms, he is accusing for fraud. 


In one of the most sensational trials to hit the financial world for years, top American lawyers have been hired by both sides in what could potentially be an ugly and "bloody" face off. Even though last minutes talks were ongoing between the two parties in order to safe the both sides from destroying their public image - Guy Hands is demanding $7bn in compensation claiming that he would have paid a lower price for EMI (one of the worst timed deals of the credit bubble), an offer so low that it would have been rejected by EMI's owners, hence saving him billions and of course a lot of grief. On the other hand, Citigroup's legal team say that the alleged lawsuit was motivated by buyer's remorse. 


His decision to take one of the world's largest investment banks to court has stunned and enthralled the City and Wall Street. On the one hand, if Citigroup loses, could it affect the bank's standing with clients? Could business tail off? On the other hand, if Hands loses, will his reputation recover? Could it stop his enthusiasm for risk-taking?


For now, one thing is sure both parties have to face the music. Money is greed. One has to clearly differentiate between business and friends. 


Yacine Dessouki


Sources : 


http://www.ft.com/cms/s/0/1cbbe5f4-d884-11df-8e05-00144feabdc0.html


http://www.independent.co.uk/news/business/news/better-the-devil-you-know-terra-firma-keeps-emi-after-raising-cash-1974068.html