Private equity bods Terra Firma have spoken-out about the rumour circulating in the music industry that EMI Group Chairman Eric Nicoli is set to be replaced following their acquisition of the major earlier this month.
'Sources' claimed that the company was scouting for a successor to the current boss, even though Nicoli's board had approved the takeover, but a Terra Firma spokesperson has denied those rumours, saying: "No one has been brought in to replace Nicoli. We will sit down with him when we actually own the company, but that won't be until the start of September. Until then, no decisions will be taken". EMI themselves declined to comment on the rumours.
As previously reported, the equity group has secured commitments to sell from existing EMI shareholders to give them well over 90% of the company, and the takeover should now be completed by September. While denying any decisions have been reached regarding Nicoli, some insiders still expect significant boardroom and structural changes at the major once Terra Firma have control - especially in the recorded music division.