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.

ND

2 comments:

Obnoxio The Clown said...

Thanks for that handy summary of the situation.

The Lakelander said...

A bit of a Hand job?