- 247 -
described in the True Oil section of this opinion. See supra pp.
204-206. Accordingly, Mr. Kimball applied 35-percent
marketability discounts to the marketable minority values as of
January 1, 1993, June 4, 1994, and June 30, 1994.
b. Final Lax Report
The final Lax report concluded that a minority interest in
Eighty-Eight Oil was relatively illiquid, for the same reasons
described in the True Oil section of this opinion. See supra pp.
206-207. Therefore, Mr. Lax applied a 45-percent marketability
discount to the marketable minority value calculated as of
June 3, 1994.
c. Respondent’s Position
Respondent characterizes the Eighty-Eight Oil interests as
being marketable and therefore proposes a 10-percent discount for
interests being valued as of January 1, 1993, and June 30, 1994,
and no discount (due to swing vote potential) for the interest
being valued as of June 4, 1994.
d. Court’s Analysis
First, we reject Mr. Kimball’s justifications for
marketability discounts that derive from the buy-sell agreement
restrictions. Second, we reject Mr. Lax’s and respondent’s
proffered marketability discounts for the same reasons stated in
the True Oil section of this opinion. See supra p. 213.
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