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appraised value of Western National Bank by 2 percent. Using the
discounts they chose, the fair market value of Kosman Inc.'s 10-
percent ownership interest in Western National Bank is about
$144,000.
Petitioner's expert assumed that the merger agreement ratio
was accurate and that his estimate of the value of Scottsbluff
National Corp. stock was correct. We believe that the merger
ratio generally reflects fair market value. However, as
discussed above, we have found that his estimate of the value of
Scottsbluff National Corp. is slightly low. We conclude that the
fair market value of Kosman, Inc.’s shares of Western National
Bank on March 31, 1987, was $144,000 or $72 per share.
We give petitioner’s expert’s estimate of value on
September 30, 1986, less weight because petitioner’s expert used
the $46 amount in Professor Joy’s letter out of context, without
using any of Professor Joy's other conclusions. Professor Joy’s
letter was a single page of conclusions with no analysis.
Petitioner did not use Professor Joy’s value of Western National
Bank stock on March 31, 1987. We believe petitioner's expert's
estimate is too low.
Respondent’s experts concluded that there was no significant
change in conditions from September 30, 1986, to March 31, 1987,
that affected the value of Western National Bank stock. We
disagree. In October 1986, the board of directors of Scottsbluff
National Corp. approved a plan to acquire Western National Bank
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