Estate of Mary D. Maggos - Page 36

                                       - 36 -                                         
          percent of PCAB of approximately $8,600,000 and result in a value           
          for a 56.7-percent interest of approximately $4,900,000.                    
          Guideline Company Analysis and Market Transaction Analysis                  
               BVS performed a guideline company analysis and concluded               
          “that the fair market value of the common stock in PCAB, as of              
          May 1, 1987, on a minority interest basis, can be reasonably                
          represented as:  $14,536,000".  Two of the companies selected,              
          Pepsi-Cola, Inc., and Coca-Cola Co., are so dissimilar in both              
          size and operations25 to PCAB that we doubt the comparisons are             
          meaningful.  The other two guideline companies were also                    
          significantly larger, having market capitalizations of $518.3               
          million and $4.2 billion.  In addition to the large discrepancy             
          in size, we are not persuaded that the remaining guideline                  
          companies’ bottling operations are similar to PCAB’s operations             
          which involve a very high percentage, approximately 75 percent,             
          of resale of product bottled elsewhere.  For these reasons, we do           
          not accept BVS’ guideline company analysis as reflecting the                
          market value of PCAB shares.                                                
               BVS also performed a market transaction analysis that                  
          isolated financial data from 16 acquisitions of bottling                    
          companies ranging in size from $14.9 million to $1.4 billion in             
          market capital.  The report gives no indication whether any of              

               25Richard Lawrence, a vice president of Pepsi-Cola Co.,                
          testified that Pepsi-Cola, Inc., and Coca-Cola Co. were in a                
          “different business” than PCAB.                                             

Page:  Previous  26  27  28  29  30  31  32  33  34  35  36  37  38  39  40  41  42  43  44  45  Next

Last modified: May 25, 2011