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from 21.7 to 30.8. The 1991 average control premium was 35.1,
the median premium was 29.4, and the minority discount
corresponding to the median premium was 22.7. The 1992 figures
were 41.0, 34.7, and 25.8, respectively. Petitioner’s expert
also looked at the Houlihan Lokey Howard & Zukin Control Premium
Study. That study reflected an average control premium of 47.6
percent and a median control premium of 44.5 percent for the
third quarter of 1992, and average and median premiums of 51.2
and 43.5 percent, respectively, for the 12-month period ended
September 10, 1992. The third quarter of 1992 included 17
transactions, and the 12-month period ended September 10, 1992,
involved 101 transactions. Petitioner’s expert converted the
median premiums for these two periods to minority discounts of
31.5 and 30.0 percent, respectively. Using the data from the two
sources, petitioner’s expert selected a minority discount of 30
percent. He applied this discount to the value of IHC obtained
above, leading to a value on a minority basis of $2,161,467, or
$340.93 per share.
Respondent’s Expert
Respondent relies on the opinion of Warren T. Jacobsen of
Horizon Capital Management (respondent’s expert). Respondent’s
expert valued the IHC stock at $606.65 per share on a minority
basis.
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Last modified: May 25, 2011