- 39 -
Fertilizer Division was between $493,590,000 and $648,610,000, or
$557,120,000 using an 8.5-percent discount rate.7
Next, Mr. Much valued J.R. Simplot Co.'s investment in Micron
Technology, a nonoperating asset. Considering that J.R. Simplot
Co. is an "affiliate" of Micron Technology under the Securities
Exchange Act of 1933 (rendering any sale of J.R. Simplot Co.'s
Micron Technology shares subject to certain restrictions under
Securities and Exchange Commission rule 144),8 Mr. Much concluded
that a year (based on approximately 250 trading days per year) or
more would be required for J.R. Simplot Co. to sell its Micron
Technology shares through normal market channels, assuming that the
shares are sold on each available day (subject to Micron
7 The following summarizes Mr. Much's TIC conclusions
regarding the Food and Fertilizer Divisions (before considering
the value of nonoperating assets and liabilities):
Market Capitalization Method
Food Division $492,470,000
Fertilizer Division 574,270,000
J.R. Simplot Co. Consolidated 1,066,740,000
Discounted Cash Flow Method
Food Division $522,780,000
Fertilizer Division 557,120,000
J.R. Simplot Co. Consolidated 1,079,900,000
8 As of June 24, 1993, John R. Simplot, Don J. Simplot,
and Gordon C. Smith, all J.R. Simplot Co. officers, were also
members of Micron Technology's board of directors, and J.R.
Simplot Co. owned more than 10 percent of Micron Technology's
common stock.
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