Estate of Richard R. Simplot - Page 69




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          venture being interested in acquiring the food division and the             
          other being interested in acquiring the chemical division).                 
               We agree with respondent's expert that on the valuation date,          
          a hypothetical buyer would consider the likelihood that one day             
          decedent's block of voting shares potentially could become the              
          largest block of voting shares because the record reveals that Don,         
          Gay, and Scott intended, upon their deaths, to pass their class A           
          shares to their children and thereafter no one shareholder (other           
          than the hypothetical buyer) would own 18 shares of voting stock.           
          Moreover, we agree with respondent that it was foreseeable on the           
          valuation date that following the deaths of Don, Gay, and Scott,            
          third-generation Simplots (a multiple number of descendants with            
          different personal objectives) would most likely be more willing to         
          sell their class A voting shares to outsiders than their parents or         
          grandfather would.  And at that time, the hypothetical buyer would          
          benefit from the right of first refusal restriction on the voting           
          stock.                                                                      
               Petitioner asserts that Don, Gay, and Scott acted as a                 
          cohesive group in following J.R. Simplot's philosophy to operate            
          the Company in a manner ensuring its perpetual existence and to             
          pass their shares and philosophy to their children.  We believe             
          this assertion to be flawed in that J.R. Simplot was the glue that          
          bonded Don, Gay, and Scott.  Indeed, Mr. Ettelson testified that,           
          over time, chances increase that closely held companies will                
          eventually sell, merge, or go public.                                       



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