Estate of Georgina T. Gimbel, Deceased, Janet G. Rogers, JoAnne M. Gimbel, and Thomas W. Gimbel, Co-Executors and Co-Trustees - Page 22

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              After evaluating the history of Reliance’s repurchases and             
          the valuation date financial and business conditions of Reliance,           
          and understanding that valuation is inherently imprecise, we                
          conclude that, as of the valuation date, it was reasonably                  
          foreseeable that Reliance would be financially able and willing             
          to repurchase 20 percent, or 720,253, of the estate’s 3,601,267             
          Reliance shares.                                                            
               Though we find some flaws and imprecision in both steps of             
          Nunes’ discount methodology, neither of the estate’s experts                
          provided a distinct methodology for estimating a repurchase                 
          discount.  We conclude that in this case the 13.9-percent                   
          repurchase discount used by Nunes is appropriate to utilize in              
          the valuation of the 20 percent of the estate’s Reliance shares             
          that we conclude it was foreseeable would have been repurchased             
          by Reliance.                                                                

          Dribble-Out Method for the 2,881,014 Balance of Reliance Shares             
               We conclude that the 2,881,014 balance of the estate’s                 
          Reliance shares should be valued under the dribble-out method.              
               The experts agree that, at the SEC Rule 144 rate of 277,860            
          shares per 3-month period, it would take 3.25 years (the dribble-           
          out period) to liquidate the estate’s 3,601,267 Reliance shares.            
          The experts, however, use different methodologies for discounting           
          the future sales proceeds to reflect the time value of money and            
          the risk that Reliance’s stock price might decrease during the              

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Last modified: May 25, 2011