-24-
Hakala used the market or guideline company approach to
estimate the value of Home and Rock Hill stock, but he excluded
three companies that Hawkins used as comparables12 because he did
not have their market trading prices as of the valuation date.
In contrast, Hawkins apparently easily obtained the stock prices
by contacting the companies.
Because of errors in preparing Hakala's report, key data
relating to the discounted cash-flow method for Home and Rock
Hill was not available at trial for petitioners to cross-
examine.13 Thus, we could not consider Hakala's discounted cash-
flow method without prejudicing petitioners. We could consider
only Hakala's market guideline method, which weakened the
persuasiveness of his opinion.
Unlike Hawkins, Hakala did not visit Home or Rock Hill,
interview the management of Home or Rock Hill, or make any other
factual investigation.
5. Conclusion
We conclude that Hawkins' methodology was reasonable, except
for his use of a small company stock premium.
12 Hakala did not use as comparables Concord Telephone, Mid-
Plains Telephone, and North Pittsburgh Systems.
13 We denied respondent's posttrial motion to reopen the
record to supplement Hakala's report because of the risk of
prejudice to petitioners.
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