DHL Corporation and Subsidiaries - Page 116

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          package sector of the air cargo market between 1987 and 2000,               
          depending on the geographical market.                                       
               During June 1989, Nicholas Miller (Miller) of Coopers, who             
          was assisting JAL and Nissho Iwai, prepared a rough estimate to             
          illustrate a conceivable value for the DHL trademark outside the            
          United States.  Miller arrived at a $25 million estimate, which             
          was provided to the foreign investors, who considered the                   
          information in their evaluation of the transaction.  In reaching            
          that estimate, Miller believed that the value of DHL’s trademark            
          rights was diluted by the agreements between DHLI and DHL and               
          DHLI’s rights and use.  Miller’s $25 million estimate was based             
          on the assumptions of $250 million of capital invested and pre-             
          tax operating profits of $80 million.  He then used a 30-percent            
          return on capital, or $75 million, leaving a premium of $5                  
          million, which he extended for 5 years to reach a $25 million               
          estimate.  The foreign investors viewed DHLI as having the right            
          to use the DHL trademark during the current term of the mutual              
          agency agreement without additional cost.                                   
               In July 1989, Schwartz questioned the impact of the DHL                
          trademark value on DHL’s tax position.  DHL shareholders had                
          proposed a $100 million value for the trademark.  JAL and Nissho            
          Iwai decided that they would offer $50 million to DHL for the               
          dual purpose of purchasing DHL’s trademark rights and infusing              
          capital into DHL.  In their decision to make this offer, JAL and            
          Nissho Iwai considered DHL’s need for capital and had considered            

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