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represented additional remuneration to Sodbury. Petitioner’s
objection states in pertinent part:
Respondent neglects to state that it was Pepe who added
the $535,000 to the value of the LIBOR notes, without
informing Brunswick. Petitioner agrees that this
valuation resulted in a transfer of wealth from
Brunswick to Sodbury, however, it would not be accurate
to characterize the inadvertent transfer as
“remuneration”.
Under the circumstances, we assume that petitioner’s
position remains that Brunswick was unaware of the aforementioned
fee. In particular, the parties’ first stipulation of facts
addressed Merrill Lynch’s valuation of Saba’s LIBOR notes in
pertinent part as follows:
265. * * * The valuation letters dated July 13,
1990 [Jt. Ex. 148-J(5)] and August 17, 1990 [Jt. Ex.
148-J(8)] and Saba’s financial statements consistent
with such letter included an additional amount of
$535,000 added to Merrill’s calculated value of the
LIBOR Notes. The valuation letter dated September 14,
1990 [Jt. Ex. 148-J(10)] and Saba’s financial statement
consistent with such letter included an additional
amount of one-fourth of the $535,000, or $133,750,
added to Merrill’s calculated value of the LIBOR Notes.
266. Brunswick contends that it was not aware
that the July 13, 1990, August 17, 1990, and September
14, 1990 valuation letters included an additional
amount of $535,000 (or a pro rata portion thereof, in
the case of the September 14 letter) added to Merrill’s
calculated value of the LIBOR Notes. Any references to
this additional amount in this Stipulation are not
intended as a stipulation that Brunswick was aware of
this additional amount. Respondent does not agree with
Brunswick’s contention.
* * * * * * *
272. For purposes of computing the price of the
July 13, 1990 purchase, the partners used Merrill’s
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