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adverse to Rod's with respect to the price terms for the stock.
As discussed above, an understated price in the 1995 FSA would
have penalized the other prospective heirs.
Obviously, the fact that the district court concluded in
1995 that the $118 price was inadequate, and the fact that Rod
was able to secure a price of $217.50 per share from FABG in
1997, raise questions concerning whether the $118 price in the
1995 FSA was comparable to similar arrangements entered at arm's
length. However, on the facts of this case, we are persuaded
that the 1995 FSA price terms were arm's length. The prospective
heirs other than Rod agreed to the $118 price even though they
were aware of the district court proceedings where it was found
inadequate. In our view, the other prospective heirs and Rod
simply disagreed regarding the potential risks and rewards of
further negotiation or litigation with FABG over the value of the
Hill Rights.29 In the circumstances, the other prospective heirs
struck a bargain for the proverbial "bird in the hand" of a
guaranteed price, transferring to Rod the benefits and burdens of
the pursuit of the possible "two in the bush". It may have been
a bad bargain in hindsight, but we are persuaded it was arm's
length when made.
A second factor also bears on our conclusion. The nub of
the differing judgments on the value of the Hill Rights concerned
29 See supra note 26.
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