ACM Partnership, Southampton-Hamilton Company, Tax Matters Partner - Page 96

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          7.  Final Stage of Colgate's Partnership Strategy                           
               ACM made additional purchases of Colgate debt from the                 
          marketplace as follows:                                                     
                                                                 Aggregate            
          Issue                              Principal           Purchase             
          Acquired             Date           Amount             Price                
          Euro Notes     6/1/90              $5,000,000     $5,154,861                
          Long Bonds     9/6/90              4,000,000           3,864,622            
          Euro Notes     9/11/90             1,750,000      1,859,132                 
          Long Bonds     9/12/90             6,000,000      5,852,290                 
          Euro Notes     10/23/90            2,000,000           2,159,389            

               There were also exchanges between ACM and Colgate of the               
          Met Note and approximately one-third of the Long Bonds.  In                 
          January 1990, ACM exchanged the Met Note for a new Colgate Note             
          with substantially identical terms.  This new note was, in turn,            
          exchanged on July 26, 1990, for the purpose of rescheduling                 
          certain payments.                                                           
               ACM made two exchanges of the Long Bonds, which totaled                
          $10 million.  On December 13, 1989, ACM exchanged $4.7 million              
          principal amount of Long Bonds for $5 million principal amount of           
          Colgate 8.72-percent notes due June 13, 1993.  On March 1, 1991,            
          the partnership exchanged $4.85 million principal amount of Long            
          Bonds for $5 million principal amount of Colgate Notes due in               
          1994.  The exchanges of the Long Bonds had the effect of reducing           
          Colgate's original average debt maturity of 13 years by only                
          2 months (or 1 percent).                                                    







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