Tribune Company, As Agent of and Successor By Merger to the Former the Times Mirror Company, Itself and its Consolidated Subsidiaries - Page 36

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          from a negative number, through worthless, to a maximum of                  
          $337 million.                                                               
               Respondent also presented the testimony of William R. Zame             
          (Zame), an economics and mathematics professor, who applied game            
          theory principles to determine the value of the MB Parent common            
          stock uncoupled from the management rights over the LLC.  Zame              
          acknowledged that his computed value was not the same as fair               
          market value.  He did, however, recognize that:                             
               [because] the common stock of MB Parent represents a                   
               derivative claim to the resources of Eagle I, by                       
               analyzing the nature of that derivative claim it is                    
               possible to determine the amount a rational, well-                     
               informed investor might be willing to pay for this                     
               claim, keeping in mind that there are other competing                  
               claims to the resources of Eagle I.  It is value in                    
               this sense that this report estimates.                                 
          Zame applied probabilities to various assumptions and determined            
          the most plausible estimates of the value of the MB Parent common           
          stock as a fraction of the value of the LLC’s assets.  His                  
          analysis concluded that the “upper bounds of the stand-alone                
          value” of the MB Parent common stock ranged from .595 to .800 of            
          the value of the LLC.                                                       
               Another of respondent’s experts, Michael J. Barclay                    
          (Barclay), addressed the value of the management authority from a           
          financial standpoint.  Barclay also considered alternative                  
          assumptions about fiduciary duty and concluded that, without a              
          fiduciary duty from the manager to the LLC, MB Parent, or the MB            
          Parent common stockholder, the management authority would have a            





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