Investment Research Associates - Page 154




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         conclude that such payments were not attributable to them, it                 
         follows that such payments or portions thereof are attributable               
         to the entities that received the payments.                                   
         A.   The Transactions                                                         
              We begin by examining the transactions at issue.                         
         1.   The Hyatt Payments                                                       
              In a joint venture with others, Prudential built the                     
         Embarcadero Hotel and sought a management company to operate it.              
         Originally, only Webb and Intercontinental were considered for                
         the management contract on the hotel.  Although Hyatt had                     
         successfully negotiated the management contract for the Houston               
         Hyatt Hotel, in which Prudential was involved, Lisle was not                  
         interested in having Hyatt bid on the management contract for the             
         Embarcadero Hotel.  Pritzker offered to pay 10 percent of the                 
         management fees to Weaver if he could get Prudential to award the             
         contract to Hyatt.  Weaver then convinced Lisle to allow Hyatt to             
         bid on the contract.                                                          
              Representatives of the hotel's owners, including Lisle and               
         Ballard representing Prudential, then met with Webb and Pritzker              
         to obtain bids on the management contract.  Apparently, since                 
         Intercontinental was not represented at the meeting,                          
         Intercontinental either withdrew or was eliminated from                       
         consideration prior to the meeting.  Webb refused to submit a bid             
         at the meeting because he thought he had previously been promised             






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