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Partnership Committee authorized ABN Trust to conduct "such
further discussions from outside the U.S. as are necessary with
Metropolitan prior to such meeting."
During the proceedings in Bermuda, Taylor and Fields, on two
separate occasions, presented Pohlschroeder and Belasco with
revised estimates of the present value of transaction costs that
were likely to be incurred in connection with the anticipated
partnership transactions. According to one estimate, the total
amounted to $6.95 million before tax, including $1.31 million
origination cost on the sale of the private placement securities
and issuance of the LIBOR Notes and $1.0 million for remarketing
of the LIBOR Notes. The other estimate was higher: A total of
$7.91 million before tax, including origination and remarketing
costs of $2.0 million and $1.1 million, respectively. Colgate
and Merrill did not discuss the costs of alternative short-term
investments for the partnership's cash balances pending
acquisition of Colgate debt.
On November 2, 1989, the partners' cash contributions in the
amount of $205 million were deposited in the partnership bank
account at ABN New York paying interest at a rate of 8.75 percent
annually. The funds were withdrawn, at no cost, on the following
day. By Private Placement Note Purchase Agreement between ACM
and Citicorp, dated November 3, 1989, ACM acquired from Citicorp
at par $205 million principal amount of floating rate notes due
October 19, 1994 (Citicorp Notes or the Notes). The Citicorp
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