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Netherlands, and FC-Sweden to FCI in July 1993. Burndy-US
transferred the stock of FC-Italy and FC-Spain to FCI in 1994.
FC-Italy was a subsidiary of Burndy-US on December 22, 1992,
when Burndy-US acquired the US-Europe noncompetition agreement.
2. Transfer of 40 Percent of Burndy-Japan Stock to Burndy-
US in 1993
Furukawa and Sumitomo each transferred 297,600 shares (20
percent) of Burndy-Japan stock to FCI in 1993. On July 30, 1993,
and August 2, 1993, FCI paid FF300,356,4237 for �5,210,000,000.
FCI paid �2,604,000,000 to both Furukawa and Sumitomo, for a
total of �5,208,000,0008 on September 29, 1993.
The yen lost value relative to French francs from August 2,
1993, when �100 cost FF 5.8069, to September 29, 1993, when �100
cost FF 5.342. �5,208,000,000 cost FF278,211,360 on September
29, 1993. FCI could have paid FF22,145,063 (FF300,356,423 less
FF278,211,360) fewer French francs by delaying its yen purchase
to September 29, 1993. FF22,145,063 was the equivalent of
$3,926,430 based on the September 29, 1993, exchange rate
(FF5.6400 equaled $1) published by the Federal Reserve Bank of
New York. FCI decided that Burndy-US should pay FCI for the
exchange rate loss.
7 FF refers to French francs.
8 The record does not state what FCI did with the
�2,000,000 difference between the �5,210,000,000 that FCI bought
and the �5,208,000,000 that FCI paid to Furukawa and Sumitomo.
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