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unreasonably low and inconsistent with Wilber Corp's historically
strong financial position.
Respondent's expert then relied heavily on a hypothetical
scenario in which a single investor or group of investors
(purchasers) might purchase decedent's entire block of stock
(representing a 23.8-percent interest in Wilber Corp) and use
this block of stock to force the Farone family trusts, the
Jesuits of Holy Cross, other charitable trusts, and other current
holders of shares of stock in Wilber Corp to sell their shares to
the purchasers, enabling the purchasers to acquire at least 51
percent or effective control of Wilber Corp. Because of
respondent’s expert’s opinion that his hypothetical scenario had
a realistic possibility of becoming a reality, respondent's
expert opined that a conservative control premium of
approximately 35 percent should be applied to the average over-
the-counter sales price of $50 per share. Finally, respondent's
expert concluded that because the market for shares of stock in
Wilber Corp was thin, not for lack of buyers, but for lack of
willing sellers, the size of the block of stock should not be
considered significant and no blockage discount should apply.
Although we conclude that petitioner's experts made
unreasonably low projections regarding the future financial
condition, profitability, and overall performance of Wilber Bank,
we find petitioner's experts generally more credible and their
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Last modified: May 25, 2011