Tribune Company, As Agent of and Successor By Merger to the Former the Times Mirror Company, Itself and its Consolidated Subsidiaries - Page 28

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               holders of the Initial Member’s [MB Parent’s] common                   
               equity and not to the holders of any other class of the                
               Initial Member’s [MB Parent’s] equity.                                 
          Petitioner’s brief, in attacking respondent’s valuation experts,            
          asserts:                                                                    
                    The LLC Agreement was written with the                            
               understanding that the manager, TM, would be the 100%                  
               indirect owner of the MBP [MB Parent] Common.  * * *                   
                         *    *    *    *    *    *    *                              
               * * * the management authority and the MBP Common were                 
               not owned by two parties; TM was not only the manager,                 
               but also the 100% indirect owner of the MBP Common,                    
               which was directly owned by a holding company which TM                 
               had created to hold TM’s property.  The rights to be                   
               valued are in fact the rights held by one party.  * * *                
               Petitioner does not point to any provision in the                      
          documentation of the transaction that restricts Times Mirror’s              
          use of the LLC’s cash, although petitioner asserts limitations              
          under Delaware law.  Representations of Times Mirror to its                 
          shareholders indicated that the cash in the LLC would not be used           
          for working capital but would be used for repurchase of stock and           
          strategic investments.  However, nothing in the documents                   
          contains this restriction on the use of cash for working capital,           
          which was a management decision consistent only with tax advice             
          given to Times Mirror.  The advisers, Shefter and Behnia, had               
          made it clear to Reed before the transaction that “the LLC                  
          agreement will not contain any restrictions on the use of the               
          cash.”  In any event, cash is fungible.  Use of the LLC’s cash in           







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Last modified: May 25, 2011