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C. David Allen, Jr., of Price Waterhouse LLP approximating the
valuation of Ormet in the range of $700 million to $800
million.27 By letter dated March 1, 1995, to Mr. Conner, Donald
J. Pfingstler of Barrington Consulting Group, Inc., addressed the
value of Ormet and the value of petitioner’s shares in Ormet held
individually and as trustee under the voting trust agreements.
Mr. Pfingstler concluded that had petitioner acquired
sufficient Ormet shares to control Ormet, the valuation of his
shares would have been $376 million to $588 million; otherwise,
as turned out to be the case, the valuation of petitioner’s
shares would be approximately $110 million to $165 million
because they reflected a minority discount. In a June 27, 1995,
letter to Charles E. Bachman (Mr. Bachman), attorney for Ormet,
Mr. Conner indicated that petitioner would sell his shares and
the shares of his voting trust back to Ormet “for cash[,] and
[it] would involve the settlement and discontinuation of all
litigation [the Six Lawsuits], at the buyer’s request, or
Bradley’s cooperation in the continued pursuit of the litigation,
again, at the buyers [sic] option (and with his financing of the
costs of litigation).” This offer was subject to further
negotiations.
27 Mr. Conner testified that petitioner was not able to
effectively use the Price Waterhouse LLP valuation in determining
the value of Ormet because Price Waterhouse LLP withdrew its
draft valuation, claiming that it was unauthorized.
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