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We conclude that as of the valuation date a disposition of
the estate’s Reliance shares through either a secondary public
offering or a private placement was not likely.
Reliance Repurchase
In his report, Range does not discuss the foreseeability of
Reliance repurchasing the estate’s Reliance shares.
Kimball concludes that as of the valuation date it was not
reasonably foreseeable that Reliance would repurchase any of the
estate’s Reliance shares, and he therefore does not factor a
repurchase of the estate’s Reliance shares into his valuation.
Kimball does note that if Reliance were to repurchase the
estate’s Reliance shares, the shares would be discounted in the
same manner as if they had been sold in a private placement.
Nunes concludes that as of the valuation date it was
reasonably foreseeable that Reliance would repurchase 50 percent
of the estate’s Reliance shares and that the discount on the
sales price for the repurchase would be 13.9 percent. Nunes does
not indicate specifically how he concludes that it was reasonably
foreseeable that 50 percent of the estate’s Reliance shares would
be repurchased.
Nunes arrives at his 13.9-percent repurchase discount in a
two-step process. Nunes first calculates a 12.5-percent
repurchase discount based on the following: (1) For the actual
October 2000 repurchase of a significant portion of the estate’s
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