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that he said used the most appropriate methodology. He inferred
that Burndy-US did not pay a control premium because the agreed
price of �8,750 per share was �118 less than the KPMG estimate
that he chose.
As a basis for his inference, Hashimoto used Furukawa’s and
Sumitomo’s offer to sell Burndy-Japan stock in 1993 for �10,900
per share which was about 20 percent higher than the sales price
of �8,750 per share. Burndy-US did not accept that offer. We
infer nothing from Furukawa’s and Sumitomo’s offer to sell
because we do not know why Furukawa and Sumitomo asked for
payment of �10,900 per share, and because this unaccepted offer
does not establish the fair market value of Burndy-Japan stock.
Premier Packing Co. v. Commissioner, 12 B.T.A. 637, 643 (1928);
Parker v. Commissioner, 11 B.T.A. 1336, 1351 (1928); Wallis
Tractor Co. v. Commissioner, 3 B.T.A. 981, 1001-1002 (1926).
Hashimoto opined that Burndy-US paid a 12-percent control
premium for Burndy-Japan stock in 1973. Hashimoto said that
Burndy-US paid a premium in 1973 equal to the difference between
the final sales price and 80 percent of Furukawa’s and Sumitomo’s
initial offer. Hashimoto discounted the initial offer by 20
percent to account for the fact that Furukawa and Sumitomo each
reduced their shareholdings in Burndy-Japan from 33 to 25
percent.
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