DHL Corporation and Subsidiaries - Page 114

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          and otherwise, for royalties due from DHLI for prior use of the             
          DHL trademark.  It was estimated by the sellers’ representatives            
          that the possibility of an imputed royalty could fall in the                
          range of 4 to 6 percent of DHLI’s annual gross revenues.                    
               It was at a May 10, 1989, meeting that the sellers’                    
          representatives proposed using the purchase of the DHL trademark            
          as a vehicle for capitalizing DHL.  It was proposed that any gain           
          on the trademark sale could be offset by DHL’s net operating                
          losses and that DHL could license the trademark from JAL and pay            
          royalties, and DHL’s taxable income could thereby be reduced.               
               The foreign investors retained the assistance of an                    
          investment banker, Robert Fleming & Co., Ltd. (Fleming), and in             
          February 1989, Fleming prepared a preliminary draft report                  
          concerning valuation.  Fleming placed a value ranging from $600             
          million to $1.3 billion on the global DHL business, depending on            
          the methodology.  Fleming also estimated that a prospective                 
          purchaser could expect to pay a premium of 40 to 45 percent to              
          gain control.  Fleming indicated that the DHL name, while                   
          intangible, does have a value that the vendors would expect to              
          see reflected in the price.  Fleming also suggested that the                
          selling shareholders might demand additional consideration for              
          the value of the DHL trademark in the range of 10 to 15 percent             
          of the DHLI/MNV stock price.  After a more complete due                     
          diligence, Fleming issued a second report dated June 9, 1989,               
          which determined that DHLI and MNV had a value in a range from              

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