We've noted often that the private equity industry (private equity news) has something of a love-hate relationship with its bankers. The fight between Terra Forma and its Citigroup bankers exemplfies this. Settlement talks between the firms have apparently broken down.

As the trial gets underway, a lot personal drama is unfolding. British financier Guy Hands of Terra Firma--who accused Citigroup of falsely suggesting that Cerebus was also interested in bidding for music company EMI in 2007--sat less than six feet away from David Wormsley, one of Citigroup's leading European bankers, according to Reuters. The two used to be friends.

At issue: telephone conversations between Hands and Wormsley in May 2007. "Hands says Wormsley told him that if he did not make a strong bid for the record company, rival Cerberus Capital Management LP would win with a higher offer," reports Reuters. "Wormsley denies telling Hands of any Cerberus bid. As it turned out, there was never a bid from Cerberus or any other competitor of Terra Firma."

For more:
- here's the article
- here are the opening remarks

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