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* * * [I]f somebody else had had a machine that
did 1- to 2-pound low density polyethylene foam, you
would have seen an article in one of the, you know,
whatever, Modern Plastics, or Technology, whatever.
Petitioner stated that he was familiar with the Foremost
Densilator, Regenolux, Buss-Condux Plastcompactor, and Cumberland
Granulator. He attended a number of plastics shows and "pretty
much all those companies advertised their goods to" Celanese.
Also, Celanese had a technical laboratory where it "had pretty
much just about every plastics machine, grinder, [and] piece of
equipment that you can imagine to test for their customers",
including "basically" all the machines mentioned. Petitioner
asserted that he questioned the testing facility personnel about
PI's reputation, the Sentinel EPE recycler, and other machines.
Petitioner used the projections in the Northeast offering
memorandum to run "a series of sort of back of the envelope
calculations to see whether or not the business made any sense
from an economic standpoint." He described the Northeast
transaction as "basically a closed loop deal", which "is very
important to the economics of this". Petitioner analyzed the
economics from both a full equity basis and a cash basis. In so
doing, he did not give any consideration to the manufacturing
costs of the recycler. Petitioner explained:
Manufacturing costs, per se, of this particular
item is only a small part of the economics. In this
particular case, I didn't really think it had much
relevance to the decision.
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