Guy Hands, the founder of Terra Firma Capital Partners, made misrepresentations in an effort to lowball EMI Group in the days before making a bid for the British recording company, a Citigroup banker testified yesterday.

David Wormsley, a top Citigroup investment banker in Europe, testified that Hands had a reputation for making "lowball offers" and told senior members of the EMI team that Wormsley had said EMI's board would be receptive to an offer of £2.40 a share.