EFTA02428533.pdf

To: Jeffrey Epsteinueevacationagmail.com] From: David Stem Sent Mon 3/15/2010 12:40:32 PM Subject: EMI US private equity firm KKR is preparing to launch a break-up bid with Warner Music for Terra Firma's EMI, according to the Sunday Times. If Terra Firma cannot convince investors to drum up another £120m (€132m), Citigroup, which put up more than £2.5bn (62.7bn) for EMI's buy-out in 2007, will take over the music group. KKR is said to be looking to acquire EMI's music publishing arm, which owns the rights to famous songs such as Over The Rainbow, and already has a music publishing joint venture with Bertelsmann. Warner has coveted EMI's recorded music division and previously been blocked from tying up with the company by competition authorities, the report said. EMI Music Publishing is valued at £1.2bn (61.3bn), while the recorded music business is harder to value as its future is in question, with big acts like the Rolling Stones and Radiohead having already jumped ship. A bid is unlikely to be made until EMI has resolved its issues with Citigroup, which it must pay £120m to settle a covenant breach. Terra Firma, EMI's private equity owner, has also sued Citi for allegedly misleading it over the sale of the music group. EMI's woes don't end there, as chief executive Elio Leoni-Sceti is stepping down from his position at the end of the month. The record label last week lost a court case with Pink Floyd over the sale of their music as individual song downloads. This message is confidential. It may also be privileged or otherwise protected by work product immunity or other legal rules. If you have received it by mistake please let us know by reply and then delete it from your system; you should not copy the message or disclose its contents to anyone. Opinions, conclusions and other information in this message that do not relate to the official business of Asia Gateway Ltd. shall be understood as neither given nor endorsed by it. Asia Gateway Ltd. Michelin House 81 Fulham Road London SW3 6RD UK EFTA_R1_01498010 EFTA02428533 Tel: Fax EFTA_R1_01498011 EFTA02428534