Merrill Lynch & Co., Inc. & Subsidiaries - Page 77




                                       - 77 -                                         
          to facilitate the uninterrupted management of ML Capital                    
          Resources’ lease portfolio after the sale closed.  In addition,             
          on the date of the earliest 1987 cross-chain sale, petitioner had           
          already had substantial contacts with prospective purchasers                
          including GATX/BCE.  GATX/BCE had apparently already submitted a            
          preliminary indication of interest (including a cash purchase               
          price), and GATX/BCE had been selected by petitioner to perform             
          detailed due diligence regarding the proposed sale.  Two days               
          before Merrill Parent’s board of directors approved the sale of             
          ML Capital Resources and authorized appropriate officers to                 
          finalize the deal, GATX/BCE had submitted its formal bid to                 
          purchase ML Capital Resources’ stock.  Merrill Parent had                   
          received and reviewed the bid prior to the board meeting and, in            
          the written summary distributed at the meeting, described                   
          GATX/BCE to the board of directors as the “likely purchaser”.               
               We reject petitioner’s argument that any uncertainty                   
          regarding the terms of the proposed sale of ML Capital Resources            
          at the time of the cross-chain sales prevents integration of the            
          transactions for purposes of section 302(b).  A binding                     
          commitment or even an agreement in principle that each step of a            
          plan will occur is not a prerequisite for finding that a firm and           
          fixed plan existed, although uncertainty regarding one or more              
          steps of the plan is a factor we must consider.  Roebling v.                
          Commissioner, 77 T.C. at 55; Niedermeyer v. Commissioner, 62 T.C.           






Page:  Previous  62  63  64  65  66  67  68  69  70  71  72  73  74  75  76  77  78  79  80  81  Next

Last modified: May 25, 2011