DHL Corporation and Subsidiaries - Page 119

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          further negotiation at that time was useless, and the                       
          negotiations ceased.  The negotiations resumed late in 1989.                
               Nissho Iwai, without JAL, approached the DHL shareholders in           
          October 1989 to see if they would sell control of DHLI/MNV for a            
          purchase price based upon a total value for the entities of $670            
          million.  The DHL shareholders reacted favorably.  JAL objected             
          to Nissho Iwai’s actions.  Also in October 1989, Peers suggested            
          to JAL that it purchase a 25-percent interest in DHLI/MNV.  Peers           
          advised that if JAL wanted a controlling interest, it would have            
          to increase the purchase price to $650 million for DHLI/MNV and             
          the DHL trademark with a 1-percent royalty.                                 
               On October 19-20, 1989, Hillblom and Mitsuo Ando (a JAL                
          principal) reached an understanding, which they recommended to              
          their colleagues, under which JAL would purchase 50 percent of              
          DHLI/MNV, Nissho Iwai would purchase 10 percent, and the DHL                
          shareholders would retain 40 percent, based on a $450 million               
          value of DHLI/MNV to determine the purchase price.  JAL then                
          advised that it would agree to the above terms only if it                   
          received control of the boards, and Hillblom rejected that offer.           
          JAL then suggested buying, with Nissho Iwai, a 39-percent                   
          interest in DHLI/MNV.                                                       
               Hillblom believed that for control (51 percent or more) of             
          DHLI/MNV, the purchase price had to be based on a valuation of              
          $600 million or more; for less than control, the purchase price             
          could be based on a valuation of $500 million.  Allen strongly              

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