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pending company acquisition which was being negotiated as of the
valuation date.
Regarding the viability of a private placement, the evidence
indicates that, other than a repurchase by Reliance, as of the
valuation date a private market for the estate’s Reliance shares
did not exist. Hannah testified, and the experts generally
agreed, that as of the valuation date there existed no strategic
investors for Reliance stock. The estate’s inability, despite
the attempt of its representatives, to locate a strategic
investor for the estate’s Reliance shares corroborates our
finding that as of the valuation date strategic investors for the
estate’s Reliance shares did not exist.
Even if a strategic investor for Reliance shares did exist,
the estate’s Reliance block represented a minority interest that
likely would not have been marketable to a strategic investor
because of industry trends towards acquisition of entire
companies.
Further, due to the resale restrictions on the estate’s
Reliance shares, which would have been also applicable to a
purchaser of the estate’s restricted Reliance shares, an
institutional investor, because of the need to maintain liquidity
in its investments, likely would not have been interested in
purchasing the estate’s Reliance shares.
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