Monday, 14 December 2009

Shaking Hands at EMI

EMI was never an obvious acquisition for Guy Hands, as we said at the time: it lacked the key characteristic of his previous successes – steady, conventional cash-flow for ease of subsequent securitisation. Instead he acquired a business that he hoped to transform via a fanciful two-pronged strategy of Hands-on cost-cutting, and innovation in channels to market and pricing.

Innovation & cost-cutting in the media business - did he think he was Murdoch ? Or was the Devil making work for idle Hands ?

So, instead of sticking to the business and financing models he knew, he wanted the whole world in his Hands. He accepted the helping Hands of a standardised CitiCorp finance package on offer at the time of acquisition. Clap Hands ? Nope: it’s all gone sour and now it’s Hands on deck. Suing his bank ! - biting the Hands that feed.

Time to put your Hands up, Guy, you’re playing losing Hands here – losing Hands-down, in fact. No cash in Hand(s). Time to shake Hands and walk away.

Sorry about that, folks, don’t know what came over me.

Now wash your Hands.



Obnoxio The Clown said...

Thanks for that handy summary of the situation.

The Lakelander said...

A bit of a Hand job?