- 8 -
interest thereon totaled $1,382,965. G�nther also owed Actium
$4,942,343 under the terms of its lease.10
VI. Petitioner’s Efforts To Sell G�nther During 1987-1990
In 1987, petitioner decided to focus on its core businesses
and began efforts to sell G�nther and its other electronics
subsidiaries. Petitioner engaged investment bankers in the
United States and in Germany to find potential buyers, and the
bankers endeavored to do so during 1988, 1989, and 1990. As part
of the sales effort, petitioner and its agents contacted hundreds
of potential purchasers, and serious discussions were held with
more than 10 companies.
In 1990, petitioner negotiated a letter of intent with a
potential purchaser, AMETEK, to sell G�nther for DM 11 million.
The consideration included Flint's release from its guaranties of
G�nther's bank loans. In late 1990, however, AMETEK withdrew its
letter of intent for undisclosed reasons while conducting its due
diligence investigation. This withdrawal coincided with rising
oil prices during the Gulf War and a general downturn in the
European auto industry, during which the electronics and
automotive industries suffered setbacks.
10G�nther’s liabilities were stated in deutsche marks. The
amounts in this paragraph have been converted to U.S. dollars
using an exchange rate of .6025.
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