- 39 -
because substantial amounts of these public issues were held by
institutions. Based upon his own study of market activities and
consultation with traders during the first 6 to 9 months of 1989,
Pohlschroeder was able to estimate how much of the Long Bonds and
Euro Notes were available. Colgate's treasury department had
Yordan perform further research on availability and price. By
the beginning of October, Pohlschroeder felt confident that the
partnership would meet Colgate's debt purchase target of
approximately $140 million.
The only genuine question in regard to the Met Note was
price. In late September, Pohlschroeder contacted Met Life to
indicate a possible interest in purchasing the Met Note. On
October 23, a few days before he returned to Bermuda to conclude
the Partnership Agreement, Pohlschroeder prepared himself for
negotiations with Met Life by conferring with Yordan. His notes
from that conversation conclude with a reference to the date
November 17, which is circled. As the minutes of the First
Partnership Meeting reflect, Pohlschroeder contacted Met Life
again from Bermuda to invite a representative of the insurance
company to negotiate a sale of the note in Bermuda on
November 17. The statement in the minutes that Pohlschroeder had
communicated an offer on specific terms appears to have no basis
in fact, however. It is clear that Pohlschroeder refused to
enter into any discussion of terms on that occasion. During the
3 weeks prior to the meeting scheduled for November 16 and 17,
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