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The parties argue extensively as to whether there had been
any prior negotiations between decedent or John Cidulka and
Whiteco before the offer that resulted in the sale of SOAI assets
to Whiteco for $7 million in January 1986 was made. In preparing
his report, respondent's expert, Mr. Ruppert, interviewed an
officer of Whiteco, who stated that there had been discussions
between decedent and Whiteco officials, and also between John
Cidulka and Whiteco officials, with respect to a sale of the SOAI
assets to Whiteco on the basis of a multiplier of net sales
higher than the multiplier at which the actual purchase was made.
However, the official that reported this to Mr. Ruppert was not
called as a witness by either party.
Petitioner offered the testimony of the accountant who had
been assisting in keeping the records of SOAI for several years
prior to 1981, and thereafter until the sale by SOAI of its
assets. This witness testified that he did not know of any
negotiations for the sale of assets of SOAI prior to about the
time of the sale. However, he did say that in late 1985 John
Cidulka asked him to prepare a valuation of the assets of SOAI
and that he prepared what he considered a proper valuation of the
assets based on their book value which was in the vicinity of $1
million, and that when he showed it to John Cidulka, John Cidulka
told him to destroy the document. We, therefore, do not consider
this record to show what negotiations, if any, led up to the sale
of SOAI's assets in January 1986. We might note, however, that
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