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the convenience of limiting the extent of Kannex's risk exposure.
5. Initial Stage of Colgate's Partnership Strategy
The first meeting of the Partnership Committee (First
Partnership Meeting) was held in Bermuda on October 27, 1989.
The first noteworthy item of business was to appoint Merrill as
qualified appraiser of partnership assets and to authorize both
Merrill and ABN to make necessary arrangements for the purchase
of three specified issues of Colgate debt: (1) $100 million
principal amount of 8.4 percent private placement notes due in
1998 (Met Note) held by the Metropolitan Life Insurance Co. (Met
Life); (2) $35 million principal amount of 9.625-percent notes
due in 2017 (Long Bonds); (3) $5 million principal amount of
9.5-percent Eurodollar notes due in 1996 (Euro Notes).
Next, the Partnership Committee resolved that "in order to
maximize the investment return on its assets pending the
acquisition of Colgate-Palmolive Bonds", the partnership
authorized Merrill to arrange for the purchase, in the form of a
private placement, of $205 million of 5-year floating rate notes
with an investor put option exercisable after about 15 to 24
months. Finally, according to the minutes, Pohlschroeder
reported that he had communicated an offer to Met Life to
purchase the Met Notes at a price within a stated price range,
and that Met Life undertook to consider the proposal and review
it with tax and legal advisers and, if interested, would come to
Bermuda on November 17 in order to complete negotiations. The
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