Framatome Connectors USA, Inc. - Page 41




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               Furukawa and Sumitomo stated in a letter dated January 27,             
          1973, that they did not want to have any confidential agreements            
          that would harm their relations with the Japanese Government.               
          There is no evidence in the record that Furukawa and Sumitomo               
          acted contrary to that stated intent.  We conclude that the                 
          Burndy-Japan shareholders did not have an undisclosed agreement             
          giving Burndy-US control over Burndy-Japan in 1973.                         
                    g. Whether Burndy-US Paid a Control Premium for                   
                         Burndy-Japan Stock It Acquired in 1973 or 1993               
               Petitioners contend that Burndy-US paid a control premium              
          when it acquired 50 percent of the stock of Burndy-Japan in 1973            
          and did not pay a control premium when it acquired an additional            
          40 percent of that stock in 1993.  We disagree on both points.              
               First, Cantor stated in a memorandum to York in 1980 that he           
          refused to pay a control premium when he negotiated the price               
          of Burndy-Japan stock in 1973.  Cantor testified at trial that              
          Burndy-US paid a control premium in 1973, but he could not                  
          explain the conflict between his testimony and his 1980                     
          memorandum.                                                                 
               Second, a 1978 Burndy-US memo to Farley states that Burndy-            
          US should be prepared to pay a 20-percent control premium for               
          increasing its ownership of Burndy-Japan stock to more than the             
          50 percent it then owned.                                                   
               Third, FCI said in its 1993 annual report to shareholders              
          that it acquired control of Burndy-Japan in 1993 when Burndy-US             





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