- 45 - willing to accept the initial price if they could share in the benefits of mutual affiliation by deferring the sale of a significant minority interest and enhance its value. In July 1989, JAL’s and Nissho Iwai’s advisers estimated that at least one-half of DHL’s value was attributable to the agency agreement and the goodwill of the DHL trademark. In late August 1989, JAL’s and Nissho Iwai’s advisers were advising that unless they increased the purchase price, the transaction would not be consummated. On September 14, 1989, Peers produced a revised report, valuing a 100-percent interest in DHLI/MNV at $625 to $700 million. In late September 1989, the parties discussed placing the foreign investors in a supermajority position on the boards of DHLI and MNV, and other provisions were devised to protect the DHL shareholders’ resulting minority interests against the foreign investors’ collective majority position. On September 28, 1989, JAL and Nissho Iwai extended an offer to acquire a 60-percent interest in DHLI/MNV based on a $450 million valuation of those companies, which was rejected by the DHL shareholders. During late September 1989, the DHL shareholders asked for a price based on values of at least $500 million for the DHLI and MNV stock and $100 million for the DHL trademark, which the foreign investors rejected. The DHL shareholders stated that the parties were so far apart thatPage: Previous 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 Next
Last modified: May 25, 2011