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and $70.2 million worldwide values on the 1990 and 1992 valuation
dates, respectively.17
Respondent attempts to corroborate the experts’ 1990
valuations of $287 million and $327.5 million by contending that
the 1990-92 transactional figures would support a $300 million
value for the intangibles (in respondent’s view attributable to
the trademark). Respondent points out that DHLI/MNV’s combined
shareholder equity at the end of 1998 netted out at $202 million
(positive $226 for DHLI and negative $24 for MNV). Considering
that the foreign investors paid $287.5 million for a 57.5-percent
shareholding interest of DHLI/MNV ($500 million times 57.5
percent), it follows that they were also “acquiring” 57.5 percent
of the net shareholder equity or $116.15 million ($202 million
times 57.5 percent). Therefore, respondent contends, the foreign
investors paid $171.35 million ($287.5 million less $116.15
million) for the “off-balance sheet assets”. Finally, if the
57.5 percent of the intangibles equaled $171.35 million, then 100
percent equaled approximately $300 million ($171.35 divided by
57.5 percent equals $298 million).
17 Petitioners’ valuation expert estimated separate
trademark values of the U.S. and non-U.S. rights as follows:
1990 1992
U.S. $24.2 million $18.2 million
Non-U.S. 31.0 million 52.0 million
Worldwide 55.2 million 70.2 million
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