- 99 - (i) Selection of Comparable Companies The experts differed to some extent in their choices of companies they considered comparable to petitioner. In her rebuttal report, Ms. Meyer used 18 companies she considered comparable, chosen from what she termed the “labor market” of the Retained Executives, which she defined somewhat crudely to include any company that “electricity runs through” and that met one of two additional criteria: (i) The company was one for which the Retained Executives would be qualified to work, or (ii) it was one from which petitioner could draw executives to replace any of its own executives who decided to leave. Mr. Rosenbloom’s list was confined to 10 of the companies used by Ms. Meyer. Mr. Rosenbloom considered only companies in the Value Line electrical equipment industry group, which group contained petitioner, thereby excluding electrical equipment manufacturers that were primarily defense contractors or tied to telecommunications, satellite, or other high technology industries. These excluded high technology companies, he explained, were in less stable markets and thus not comparable to petitioner, whose business was based on a mature technology with products that changed only incrementally. In line with this reasoning, Mr. Rosenbloom specifically criticized Ms. Meyer’s use of four companies as comparables--General Instrument Corp., Litton Industries, Inc., Rockwell International Corp., and Varian Associates, Inc.--on thePage: Previous 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 Next
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