Merrill Lynch & Co., Inc. & Subsidiaries - Page 36




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          bid proposal).28  GATX reconfigured its April 21, 1987, bid                 
          proposal from $63 million, plus 70 percent of the discounted                
          value of the residual payments in excess of $27 million, to $66             
          million, plus 40 percent of the discounted value of residual                
          payments in excess of $29.5 million.  The April 27, 1987, bid               
          proposal stated that, except for the replacement of the original            
          paragraphs in the April 21, 1987, bid proposal concerning the               
          purchase price, “all other terms and conditions remain                      
          unchanged.”  As of April 27, 1987, GATX/BCE had not evaluated the           
          lease portfolio of ML Capital Resources, and the proposed                   
          purchase price was based on the representations made in the                 
          offering memorandum.                                                        
               E.  Nonbinding Letter of Intent                                        
               On May 22, 1987, Merrill Parent entered into a nonbinding              
          letter of intent with GATX/BCE for the sale of the stock of ML              
          Capital Resources (nonbinding letter of intent).  The nonbinding            
          letter of intent confirmed that Merrill Parent had provided                 
          GATX/BCE with a draft sale agreement containing a description of            
          the assets in which ML Capital Resources had an equity interest             
          as of the proposed closing date.  The nonbinding letter of intent           
          set forth pricing terms identical to those set forth in GATX’s              
          April 27, 1987, bid proposal; i.e, $66 million plus 40 percent of           


               28The record is unclear as to whether a second round of bids           
          was conducted or whether petitioner merely asked GATX/BCE to                
          modify its original bid.                                                    





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