- 18 -18
the PPNs and reported $539,443,361 of capital gain on the sale
(i.e., $681,300,000 minus $141,856,639). The gain was allocated
among the partners as follows:
Percentage
Interest in ASA Gain
ASIC 1 $5,394,434
AlliedSignal 9 48,531,902
Barber 36 194,199,610
Dominguito 54 291,299,415
Total 100 539,425,361
The installment payments would be received on the LIBOR notes
over 5 additional partnership taxable years (i.e., May 31, 1991,
through May 31, 1995).
V. AlliedSignal Purchases Majority Interest in ASA
On August 2, 1990, AlliedSignal issued $435 million of
commercial paper. On the same day AlliedSignal purchased an
additional interest in ASA for $545 million. AlliedSignal
purchased 36 percent of ASA from Barber for $397,438,000 and
13.43 percent of ASA from Dominguito for $147,562,000. The $545
million AlliedSignal paid consisted of a $540,600,000 payment
equal to the value of Barber's and Dominguito's interest (i.e.,
49.43 percent of $1,093,657,933) and a $4,400,000 premium
payment. AlliedSignal paid the $4,400,000 to compensate for the
shortfall between ABN's specified return and Barber's and
Dominguito's income allocations. After these purchases, the ASA
interests held by AlliedSignal, ASIC, Barber, and Dominguito were
58.43 percent, 1 percent, 0 percent, and 40.57 percent,
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