ACM Partnership, Southampton-Hamilton Company, Tax Matters Partner - Page 48

                                       - 134 -                                        
          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            






Page:  Previous  122  123  124  125  126  127  128  129  130  131  132  133  134  135  136  137  138  139  140  141  Next

Last modified: May 25, 2011