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Terra Firma May Lose EMI Control by Christmas, Sunday Times Says

Terra Firma Capital Partners Ltd. may lose control of EMI Group Ltd. by Christmas as talks with Citigroup Inc. to take over the music group intensify, the Sunday Times reported.

Guy Hands, chairman of Terra Firma, has started telling his backers to expect the worst after losing his legal case against Citigroup last month, the newspaper said, without saying where it got the information.

Terra Firma may keep a small stake in EMI, while losing operational control to Citigroup, the report said.

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