- 25 - 1997. During December 1988 and January 1989, HealthTrust repurchased for $28.875 per share substantially all of the Common Stock initially purchased by HealthTrust Management. The purchase price was paid by reducing the amount of the promissory notes. On January 31, 1989, HealthTrust canceled the remaining indebtedness of HealthTrust Management and paid them additional compensation to cover the taxes on the income resulting from the debt cancellation and the payment of that additional compensation. The Goldman Sachs Valuation During 1987, petitioners retained the investment banking firm of Goldman, Sachs & Co. (Goldman Sachs) to provide a fairness opinion as to whether the consideration to be received for the Facilities was fair. Accordingly, Goldman Sachs evaluated the fair market value of the Securities. In a report dated February 2, 1988 (Goldman Sachs Valuation), Goldman Sachs concluded that the fair market value of the class A preferred stock was within a range of $152 million to $168 million (midpoint, $160 million), that the fair market value of the class B preferred stock was within a range of $97 million to $108 million (midpoint, $102 million), and that the fair market value of the Common Stock Warrants was within a range of $22 million to $52 million (midpoint, $37 million). Goldman Sachs stated further that it would not be unreasonable to use the midpoint ofPage: Previous 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Next
Last modified: May 25, 2011