Private equity firm sues Citigroup

A running theme on Wall Street as of late has been the soured relationship between private equity firms and banks. Kolhberg, Kravis and Roberts isn't starting its own investment banking unit for nothing.

But things appear to have hit a new low when it comes to private equity firm Terra Firma and its banker Citigroup (C). Terra Firma has sued the bank, accusing it of misrepresenting "fundamental facts" about the $6.5 billion EMI auction, "including the existence of another bidder and the price that bidder was willing to pay," the Financial Times reports. There's a lot to this story. Previously, the firm asked Citigroup to forgive some loans if it put new funds into EMI, the biggest portfolio company at Terra Firma, but Citigroup declined. One participant was quoted: "There has been nuclear war between the two sides for years." Terra Firma has lined up none other than David Boise as its litigator. 

For more:
- here's the article

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