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September 7, 1989, the amount of Colgate debt in the partnership
portfolio is arbitrarily assumed to be $50 million. The actual
target contemplated since July was $140 million. In the
October 24, 1989, projection, the amount of Colgate debt is
assumed to be $138.95 million. In the October 27, 1989,
projection, it is assumed to be $134.96 million. The later
numbers are not arbitrarily selected for purposes of
illustration. They clearly purport to be estimates. Both the
precision and the accuracy of the estimates suggest strongly that
by the time of the formation, at least several days before the
Citicorp Notes were acquired, not only had Colgate debt been
identified, but Merrill already had a very clear expectation of
the prices.
In our Findings of Fact, we described in detail the pattern
of studied hesitation and postponement calculated to hold up
progress in consummating the purchases of Colgate debt. A brief
summary will suffice. Weeks before his negotiations with Met
Life on November 17, 1989, Pohlschroeder was ready, but
unwilling, to negotiate. His reluctance to enter into discussion
of specific terms before the appointed date was attributable at
least in part to concern that the partnership's activities be
conducted entirely offshore. Yet, the Partnership Committee
authorized ABN Trust to proceed with the negotiations in an
offshore location for that very reason, and evidently it made no
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