Allan Leighton, Asked to do another Job.

Post by **TrueBlueTerrier** » 30 Nov 2007, 16:02

Loan strikes wrong note for Citigroup

http://www.telegraph.co.uk/money/main.j ... iti130.xml

By Dominic White and Jonathan Sibun
Last Updated: 1:45am GMT 30/11/2007

Credit squeeze thwarts US bank from syndicating any of the Â£2.5bn lent to private equity group Terra Firma to takeover EMI.

Citigroup has been unable to syndicate any of the Â£2.5bn loan it made to Terra Firma in the summer for the private equity group's leveraged takeover of struggling music company EMI.

The US bank, which is reeling from a billion dollar writedown from the sub-prime crisis, reluctantly signed the deal in August as the credit crisis unfolded.

But the continuing risk aversion among nervous investors has left it sitting with the entire loan still on its books.

Bankers warned that Citigroup faces a further hit if Terra Firma chief Guy Hands' turnaround plans for the company fail to deliver. The loan's value has fallen Â£200m. Citigroup declined to comment.

Mr Hands is conducting a strategic review which is expected to lead to severe cost cuts.

He has publicly attacked the excesses of the music business and asked Allan Leighton, chairman of the Post Office, to help with the review.

Terra Firma is understood to have sold more than Â£100m of its equity investment in EMI to co-investors in Terra Firma funds.

However, EMI and its US rival Warner have been unable to press ahead with separate plans to securitise their vast publishing catalogues.

Warner yesterday said a weak UK release schedule had contributed to tumbling fourth-quarter profits as the global CD market continued to shrink.

Warner's net profit fell to $5m (Â£2.42bn), or 3c a share in its fiscal fourth quarter, from $12m, or 8c a share, a year ago.

Revenue rose 2pc to $869m but fell 2pc when factoring in the impact of the weaker dollar.

"We had a very weak release schedule in the UK," chief executive Edgar Bronfman said on a conference call. Last year, the group benefited from Muse's smash hit album Black Holes & Revelations.

Recorded music sales, which include downloads and ringtones as well as CDs, vinyl and videos, gained less than 1pc in the quarter, led by artists including Nickelback, James Blunt and Linkin Park.

With US CD sales down 19pc across the industry this year, Warner cut distribution costs for the format and reinvested in digital operations.

Digital revenue from downloads and ringtones rose 25pc to $130m, representing 15pc of total sales. But reflecting the industry-wide drop in CDs, Warner cut 400 jobs this year, resulting in $9m in costs in the quarter.

It also continued to count the cost of its abandoned attempt to buy EMI, booking a further $1bn of costs in the fourth quarter, taking the total to $9bn.

The company is losing one of its biggest artists, Madonna, after more than 20 years. She signed a 10-year deal in October valued at more than $100m with concert promoter Live Nation that covers touring, merchandise, videos, TV and films and new recordings.

"It would've been economically imprudent of us to do that deal," Mr Bronfman said.

Warner shares were up 5c at $7.20 in midday trading, having tumbled 69pc previously this year.

"The results were generally mixed," said Tuna Amobi, a stock analyst at Standard & Poor's in New York. "Digital at 15pc of revenue shows some progress, but the decline on the physical side is the biggest concern we have."

postie28 · Post by **postie28** » 30 Nov 2007, 16:21

god help them. why on earth would anybody ask leighton for help when they can see what a b*** he's made of running royal mail ?

Post by **TrueBlueTerrier** » 30 Nov 2007, 16:30

Its about making swingeing cuts and making it more efficient and flexible.

smokerjim · Post by **smokerjim** » 30 Nov 2007, 19:27

TrueBlueTerrier wrote:Its about making swingeing cuts and making it more efficient and flexible.

A pinch of chickenshit to a week's wages there won't be any swingeing cuts at the top - and especially not for Leighton's renumeration :lfo

k979aaa · Post by **k979aaa** » 30 Nov 2007, 19:34

What another one he's got more job's than i've got drop point's it just anin't fair.

blackadder · Post by **blackadder** » 30 Nov 2007, 20:15

like to see him do our job for a week. he soon change his mind over what he wants to do with us

IWW Fellow Worker · Post by **IWW Fellow Worker** » 30 Nov 2007, 20:34

blackadder wrote:like to see him do our job for a week. he soon change his mind over what he wants to do with us

It would only be like that time that Tory MP spent a week on the dole ad said it wasn't so bad. What he needs is the knowledge he has no friends to offer him a job should he lose the one he has, no big bank acount, share options, house in Canada, then he would have some idea of how people live. What I would really like is for him to have a very real idea of how people die. On the end of a rope in his case.

k979aaa · Post by **k979aaa** » 30 Nov 2007, 20:45

IWW Fellow Worker wrote:
blackadder wrote:like to see him do our job for a week. he soon change his mind over what he wants to do with us
It would only be like that time that Tory MP spent a week on the dole ad said it wasn't so bad. What he needs is the knowledge he has no friends to offer him a job should he lose the one he has, no big bank acount, share options, house in Canada, then he would have some idea of how people live. What I would really like is for him to have a very real idea of how people die. On the end of a rope in his case.

Well it happend to sadam when they found him hidding in his spider hole!. The thing is you have to find the bastard first and the get a rope big enough to fit round the brassed neck off the serial job seeker!. FOR THIS MAN :lfo HAS MORE JOB'S THAN A PROSTITUTE IN SOHO!.

Post by **Carnoustie** » 30 Nov 2007, 20:47

postie28 wrote:god help them. why on earth would anybody ask leighton for help when they can see what a b*** he's made of running royal mail ?

I suppose he'll try telling Robbie Williams he's 25% overpaid and 40% less efficient than the Beatles at generating hits ?

Night Tonic · Post by **Night Tonic** » 30 Nov 2007, 21:35

Actually, he might have a point there....

BELIAL · Post by **BELIAL** » 30 Nov 2007, 21:52

Aint it a pisser when no one likes your jokes. We got a relief Dom who immediately walks to the site of any obvious mirth in the office ,attempts to join in and is met with stoney silence. It,s not malicious just incomprehension