Exhibit 99(c)(i)
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PROJECT TRUST
Presentation to the Board of Directors
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LAZARD January 19, 2000
PROJECT TRUST Table of Contents
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Tab Page
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I. Overview of Proposed Transaction................................... 1
II. Transaction Rationale.............................................. 2
III. Recent Events and Market Data...................................... 3
IV. Financial Projections.............................................. 12
V. Summary Valuation.................................................. 13
VI. Appendix........................................................... 18
A. Public Market Valuation
B. Comparable Transactions Valuation
C. Discounted Cash Flow Valuation
D. Minority Buy-out Transactions Valuation
PROJECT TRUST I. Overview of Proposed Transaction
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Overview of Proposed Transaction
Price Per Share $23.50
Offer Value $138.6 million(a)
$184.4 million(b)
Implied Premium 38.2% over current price of $17.00 (1/18/00)
36.2% over price of $17.25 (one month ago)
Implied Multiples(c) 2.7x 1999E Revenues ($286.0 million)
11.6x 1999E EBITDA ($66.4 million)
19.1x 1999E EBIT ($40.4 million)
25.5x 1999E EPS ($0.92)(d)
Form of Acquisition Cash Tender Offer Followed by a Merger
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(a) Based on 5,899,158 shares held by the public in the United States.
(b) Based on 5,899,158 shares held by the public in the United States plus
1,637,274 shares owned by CPCU plus options plus 25% of the value of
restricted shares.
(c) Based on 12.7 million fully diluted shares.
(d) After $4.9 million extraordinary charge, consistent with Street analysts'
presentation.
-1-
PROJECT TRUST II. Transaction Rationale
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Transaction Rationale
The complete integration of Trigen into ELYO will yield operating benefits,
reduce overall cost, and speed decision-making. The completion of this
transaction will result in greater simplification of ELYO's corporate structure,
further reduce operational and administrative costs, eliminate the expense
associated with running a separate publicly traded subsidiary, and enable ELYO
to more efficiently fund the capital needs of Trigen.
-2-
PROJECT TRUST III. Recent Events and Market Data
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Trigen One-Year Price and Volume
(1/14/99 to 1/14/00)
[GRAPHIC OMITTED]
[The following table was depicted as a mountain graph in the printed material.]
Date Volume Close
1/14/99 500 13.3125
1/15/99 1400 13.1250
1/19/99 3400 12.7500
1/20/99 169400 12.6875
1/21/99 4900 12.6875
1/22/99 300 12.6250
1/25/99 1500 12.8125
1/26/99 29300 12.6875 1/26/99 Begin construction
1/27/99 18400 12.3125 of Georgia power system
1/28/99 5200 11.8125
1/29/99 4200 12.2500
2/01/99 6300 12.2500
2/02/99 1200 12.6250
2/03/99 #N/A 12.5000
2/04/99 2600 12.1875
2/05/99 1100 12.4375
2/08/99 4200 12.9375
2/09/99 8000 13.3750 2/9/99 Reports 1998 Net Income
2/10/99 800 13.2500
2/11/99 #N/A 13.3125
2/12/99 86200 12.8125
2/16/99 #N/A 12.8125
2/17/99 2800 12.8750
2/18/99 28600 12.8750
2/19/99 1200 12.5000
2/22/99 2200 12.8125
2/23/99 2000 13.0000
2/24/99 8300 13.6875
2/25/99 1200 13.9375
2/26/99 #N/A 13.6875
3/01/99 5500 14.0000
3/02/99 8900 13.8750
3/03/99 7500 13.8750
3/04/99 #N/A 13.8750
3/05/99 500 13.8125
3/08/99 2700 14.4375
3/09/99 200 14.3125
3/10/99 1700 14.2500
3/11/99 3000 14.1250
3/12/99 3000 14.1250
3/15/99 600 14.1875
3/16/99 7000 14.6250
3/17/99 500 14.4375
3/18/99 7600 14.8750
3/19/99 5900 15.2500
3/22/99 3500 15.8125
3/23/99 27600 16.3125
3/24/99 12800 16.0000
3/25/99 100 16.0000
3/26/99 300 15.8750
3/29/99 100 15.6875
3/30/99 1300 15.3125
3/31/99 13400 13.6875
4/01/99 2600 13.6875
4/05/99 33300 13.6875
4/06/99 2000 14.1250 4/6/99 PECO settles Gray's Ferry
4/07/99 2500 14.1250 contract lawsuit
4/08/99 2000 14.0000
4/09/99 4600 14.1250
4/12/99 1100 14.0000
4/13/99 6500 13.6875
4/14/99 2300 13.6875
4/15/99 3900 13.6250
4/16/99 34200 14.0000
4/19/99 2100 14.0000
4/20/99 19600 14.0000
4/21/99 34500 14.0000
4/22/99 1600 14.4375
4/23/99 300 14.5625
4/26/99 2800 14.8750
4/27/99 3100 14.9375
4/28/99 8400 14.9375 4/28/99 Reports 1st quarter EPS of
4/29/99 19800 15.6875 $0.51 vs. $0.45 in 1998
4/30/99 5600 15.8750
5/03/99 13500 15.8750
5/04/99 2500 15.8750
5/05/99 9200 15.7500
5/06/99 1200 15.6250
5/07/99 5800 15.5625
5/10/99 3100 15.9375
5/11/99 13300 16.0000
5/12/99 1300 15.6875
5/13/99 1200 15.6875
5/14/99 4400 15.5625
5/17/99 6600 15.5000
5/18/99 1400 15.7500
5/19/99 7000 15.9375
5/20/99 500 15.9375
5/21/99 1200 15.9375
5/24/99 11000 15.8750
5/25/99 1400 16.0000
5/26/99 1600 16.0000
5/27/99 6300 15.9375
5/28/99 1900 16.3125
6/01/99 600 15.9375
6/02/99 21700 14.6250
6/03/99 29500 14.5000 6/3/99 Trigen/Cinergy sign 20 year,
6/04/99 83100 14.1875 $1.0 billion contract with
6/07/99 7500 14.8750 Millenium Chemicals
6/08/99 5500 15.4375
6/09/99 4000 16.0625
6/10/99 11000 16.0000
6/11/99 12300 16.3750
6/14/99 22000 16.5000
6/15/99 19400 16.5625
6/16/99 168500 16.8750
6/17/99 25200 16.7500
6/18/99 2300 16.9375
6/21/99 5800 17.5625
6/22/99 5300 18.0000
6/23/99 14400 17.7500
6/24/99 5600 17.7500
6/25/99 8200 18.1250
6/28/99 10100 18.6250
6/29/99 3400 18.3125
6/30/99 51700 19.0000
7/01/99 7300 19.6250
7/02/99 7900 19.4375
7/06/99 3600 19.1875
7/07/99 3100 19.1250
7/08/99 6200 19.1250
7/09/99 4600 19.8750
7/12/99 5200 19.8750
7/13/99 8800 20.6875
7/14/99 2700 20.7500
7/15/99 4900 20.3750
7/16/99 2300 20.0000
7/19/99 11500 18.8125
7/20/99 6600 18.8125 7/20/99 Commissions St. Louis heat and
7/21/99 1500 18.7500 power plant
7/22/99 6400 19.0000
7/23/99 1400 18.6875
7/26/99 2900 18.5000
7/27/99 2900 18.6875
7/28/99 6900 19.1250 7/28/99 Reports 2nd quarter EPS of $0.78
7/29/99 4200 19.5625 vs. $0.00 in 1998
7/30/99 2700 19.9375
8/02/99 8800 20.5625
8/03/99 5000 20.1250
8/04/99 9200 20.7500
8/05/99 1300 20.4375
8/06/99 1100 20.0000
8/09/99 400 19.9375
8/10/99 2300 19.6250
8/11/99 100 19.7500
8/12/99 2000 19.5000
8/13/99 2000 19.0000
8/16/99 800 19.0000
8/17/99 900 18.9375
8/18/99 1300 18.8125
8/19/99 900 18.6875
8/20/99 2100 18.3750
8/23/99 1800 18.6250
8/24/99 1700 18.6250
8/25/99 6900 18.8125
8/26/99 12700 18.0000
8/27/99 1100 17.9375
8/30/99 1800 17.6875
8/31/99 2200 17.3750
9/01/99 1000 17.3125
9/02/99 1500 17.3750
9/03/99 2400 17.5000
9/07/99 700 17.6875
9/08/99 1600 17.7500
9/09/99 400 18.0000
9/10/99 2200 18.1250
9/13/99 5500 18.2500
9/14/99 1800 18.1250
9/15/99 500 18.2500
9/16/99 2700 18.5000
9/17/99 6800 19.2500
9/20/99 60100 22.1875 9/20/99 Trigen receives buyout offer
9/21/99 41100 22.5000 from Elyo at $22 per share
9/22/99 17400 22.6875
9/23/99 7200 23.5625
9/24/99 25900 23.1875
9/27/99 11200 22.5000
9/28/99 4800 22.3125
9/29/99 5200 22.7500
9/30/99 6600 22.9375
10/01/99 3100 22.4375
10/04/99 12900 22.6250
10/05/99 17000 22.7500
10/06/99 4700 22.7500
10/07/99 36100 22.8125
10/08/99 75200 22.7500
10/11/99 9500 23.7500
10/12/99 1000 23.5000
10/13/99 2300 23.6250
10/14/99 7500 23.4375
10/15/99 2500 23.3125
10/18/99 4200 23.3125
10/19/99 1500 23.0625
10/20/99 15700 22.8125
10/21/99 6400 22.6875
10/22/99 48400 22.5000
10/25/99 19900 22.6875
10/26/99 5700 23.1250 10/26/99 Reports 3rd quarter loss of
10/27/99 84300 23.3125 $0.09 vs. loss of $0.15 in 1998
10/28/99 21900 23.1250
10/29/99 400 23.3125
11/01/99 20600 23.2500
11/02/99 1800 23.0625
11/03/99 27400 23.5625 11/3/99 Trigen/Cinergy sign 20 year,
11/04/99 1400 23.3750 $130 million contract with
11/05/99 4000 23.3125 Sweetheart Cup
11/08/99 16300 23.4375
11/09/99 13200 23.4375
11/10/99 1500 23.3750
11/11/99 14700 23.2500
11/12/99 6000 23.3750 11/15/99 Trigen/Cinergy sign 20 year
11/15/99 19700 23.9375 contract with Eastman Kodak
11/16/99 37100 22.0000
11/17/99 63200 19.9375 11/16/99 Elyo withdraws $22 per share
11/18/99 13900 20.0000 offer to Trigen
11/19/99 8700 19.9375
11/22/99 6200 18.9375
11/23/99 11800 17.5625
11/24/99 21100 17.5000
11/26/99 1000 17.3750
11/29/99 15300 16.8750
11/30/99 48000 16.3125
12/01/99 12800 16.6875
12/02/99 13100 17.0000
12/03/99 7300 17.7500
12/06/99 9100 17.1875
12/07/99 15600 16.9375
12/08/99 7200 17.5625
12/09/99 1200 17.3750
12/10/99 7400 16.9375
12/13/99 30800 17.0000
12/14/99 17000 17.0000
12/15/99 4400 16.7500
12/16/99 11300 16.9375
12/17/99 15100 17.2500
12/20/99 19300 17.8750
12/21/99 22800 18.0000
12/22/99 2100 17.8125
12/23/99 3000 18.0000
12/27/99 8500 17.9375
12/28/99 2000 17.8125
12/29/99 6300 17.1250
12/30/99 20700 16.7500
12/31/99 8400 17.3750
1/03/00 8500 17.0000
1/04/00 1100 17.0000
1/05/00 4000 16.8750
1/06/00 6800 17.0000
1/07/00 8700 17.0000
1/10/00 8400 16.7500
1/11/00 19400 17.0000
1/12/00 23500 16.5000
1/13/00 15900 16.8125
1/14/00 71700 16.8750
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PROJECT TRUST III. Recent Events and Market Data
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One-Year Comparative Indexed Share Price Performance
(1/14/99 to 1/14/00)
[GRAPHIC OMITTED]
[The following table was depicted as a mountain graph in the printed material.]
Date Trigen Composite(a) S&P 500
1/14/99 100.00 100.00 100.00
1/15/99 98.59 102.93 102.56
1/18/99 98.59 102.93 102.56
1/19/99 95.77 102.34 103.28
1/20/99 95.31 98.61 103.67
1/21/99 95.31 101.15 101.89
1/22/99 94.84 101.07 101.07
1/25/99 96.24 98.47 101.80
1/26/99 95.31 97.63 103.31
1/27/99 92.49 94.11 102.56
1/28/99 88.73 92.29 104.39
1/29/99 92.02 95.39 105.56
2/01/99 92.02 94.34 105.02
2/02/99 94.84 98.58 104.11
2/03/99 93.90 99.89 104.94
2/04/99 91.55 97.83 102.99
2/05/99 93.43 101.97 102.24
2/08/99 97.18 101.78 102.61
2/09/99 100.47 100.76 100.33
2/10/99 99.53 96.25 100.94
2/11/99 100.00 98.61 103.45
2/12/99 96.24 102.33 101.48
2/15/99 96.24 102.33 101.48
2/16/99 96.24 103.94 102.45
2/17/99 96.71 102.49 100.98
2/18/99 96.71 103.19 102.07
2/19/99 93.90 105.23 102.23
2/22/99 96.24 107.55 104.95
2/23/99 97.65 106.44 104.87
2/24/99 102.82 105.68 103.40
2/25/99 104.69 102.52 102.71
2/26/99 102.82 101.12 102.16
3/01/99 105.16 98.69 101.98
3/02/99 104.23 98.30 101.10
3/03/99 104.23 100.74 101.28
3/04/99 104.23 103.23 102.84
3/05/99 103.76 104.89 105.22
3/08/99 108.45 103.51 105.82
3/09/99 107.51 100.13 105.58
3/10/99 107.04 98.85 106.16
3/11/99 106.10 99.31 107.05
3/12/99 106.10 102.31 106.80
3/15/99 106.57 106.61 107.84
3/16/99 109.86 105.82 107.77
3/17/99 108.45 106.06 107.06
3/18/99 111.74 108.39 108.61
3/19/99 114.55 106.04 107.19
3/22/99 118.78 104.52 107.00
3/23/99 122.54 104.62 104.12
3/24/99 120.19 104.75 104.65
3/25/99 120.19 109.04 106.42
3/26/99 119.25 106.57 105.82
3/29/99 117.84 101.36 108.08
3/30/99 115.02 102.22 107.31
3/31/99 102.82 102.46 106.12
4/01/99 102.82 103.26 106.73
4/02/99 102.82 103.26 106.73
4/05/99 102.82 105.82 108.99
4/06/99 106.10 106.47 108.72
4/07/99 106.10 105.98 109.46
4/08/99 105.16 110.71 110.87
4/09/99 106.10 116.51 111.23
4/12/99 105.16 123.53 112.08
4/13/99 102.82 121.58 111.35
4/14/99 102.82 126.56 109.59
4/15/99 102.35 126.58 109.13
4/16/99 105.16 133.10 108.81
4/19/99 105.16 135.39 106.38
4/20/99 105.16 134.43 107.75
4/21/99 105.16 129.81 110.22
4/22/99 108.45 127.03 112.10
4/23/99 109.39 127.76 111.93
4/26/99 111.74 131.64 112.20
4/27/99 112.21 135.62 112.42
4/28/99 112.21 133.75 111.44
4/29/99 117.84 135.62 110.78
4/30/99 119.25 133.65 110.15
5/03/99 119.25 135.59 111.75
5/04/99 119.25 134.68 109.88
5/05/99 118.31 136.14 111.15
5/06/99 117.37 137.29 109.89
5/07/99 116.90 135.03 110.96
5/10/99 119.72 137.51 110.57
5/11/99 120.19 138.83 111.83
5/12/99 117.84 139.76 112.52
5/13/99 117.84 141.39 112.82
5/14/99 116.90 137.04 110.36
5/17/99 116.43 137.94 110.50
5/18/99 118.31 139.11 109.99
5/19/99 119.72 143.91 110.89
5/20/99 119.72 146.25 110.45
5/21/99 119.72 145.68 109.74
5/24/99 119.25 145.78 107.79
5/25/99 120.19 143.06 105.96
5/26/99 120.19 144.65 107.64
5/27/99 119.72 139.70 105.71
5/28/99 122.54 138.63 107.40
5/31/99 122.54 138.63 107.40
6/01/99 119.72 139.30 106.77
6/02/99 109.86 138.01 106.82
6/03/99 108.92 136.41 107.21
6/04/99 106.57 138.32 109.53
6/07/99 111.74 138.16 110.09
6/08/99 115.96 139.36 108.67
6/09/99 120.66 142.36 108.78
6/10/99 120.19 139.93 107.48
6/11/99 123.00 140.17 106.72
6/14/99 123.94 140.29 106.75
6/15/99 124.41 140.26 107.34
6/16/99 126.76 143.39 109.75
6/17/99 125.82 146.49 110.54
6/18/99 127.23 149.77 110.78
6/21/99 131.92 150.46 111.29
6/22/99 135.21 151.32 110.20
6/23/99 133.33 157.96 109.97
6/24/99 133.33 157.35 108.55
6/25/99 136.15 154.94 108.51
6/28/99 139.91 156.44 109.83
6/29/99 137.56 158.57 111.49
6/30/99 142.72 157.07 113.24
7/01/99 147.42 155.21 113.92
7/02/99 146.01 154.57 114.77
7/05/99 146.01 154.57 114.77
7/06/99 144.13 158.66 114.51
7/07/99 143.66 161.74 115.15
7/08/99 143.66 161.92 115.03
7/09/99 149.30 163.59 115.76
7/12/99 149.30 162.22 115.42
7/13/99 155.40 157.92 114.96
7/14/99 155.87 161.28 115.34
7/15/99 153.05 158.12 116.29
7/16/99 150.23 160.24 117.04
7/19/99 141.31 161.48 116.12
7/20/99 141.31 160.26 113.60
7/21/99 140.85 157.78 113.78
7/22/99 142.72 154.52 112.27
7/23/99 140.38 160.88 111.94
7/26/99 138.97 160.83 111.18
7/27/99 140.38 165.87 112.43
7/28/99 143.66 171.31 112.64
7/29/99 146.95 170.45 110.63
7/30/99 149.77 169.28 109.61
8/02/99 154.46 169.12 109.56
8/03/99 151.17 167.31 109.07
8/04/99 155.87 164.59 107.68
8/05/99 153.52 158.85 108.37
8/06/99 150.23 158.59 107.27
8/09/99 149.77 156.22 107.06
8/10/99 147.42 156.29 105.71
8/11/99 148.36 158.38 107.40
8/12/99 146.48 159.07 107.09
8/13/99 142.72 158.94 109.53
8/16/99 142.72 156.72 109.78
8/17/99 142.25 159.11 110.89
8/18/99 141.31 164.31 109.95
8/19/99 140.38 178.79 109.19
8/20/99 138.03 177.74 110.26
8/23/99 139.91 182.03 112.21
8/24/99 139.91 180.69 112.48
8/25/99 141.31 179.80 113.99
8/26/99 135.21 176.68 112.36
8/27/99 134.74 176.19 111.23
8/30/99 132.86 175.45 109.23
8/31/99 130.52 175.77 108.93
9/01/99 130.05 176.86 109.81
9/02/99 130.52 172.54 108.82
9/03/99 131.46 178.23 111.97
9/06/99 131.46 178.23 111.97
9/07/99 132.86 185.31 111.41
9/08/99 133.33 185.04 110.89
9/09/99 135.21 185.79 111.18
9/10/99 136.15 189.86 111.51
9/13/99 137.09 187.86 110.88
9/14/99 136.15 186.40 110.24
9/15/99 137.09 184.66 108.73
9/16/99 138.97 185.33 108.77
9/17/99 144.60 186.59 110.17
9/20/99 166.67 183.50 110.17
9/21/99 169.01 184.48 107.87
9/22/99 170.42 184.53 108.11
9/23/99 177.00 182.60 105.63
9/24/99 174.18 179.44 105.38
9/27/99 169.01 178.85 105.87
9/28/99 167.61 172.94 105.78
9/29/99 170.89 172.87 104.63
9/30/99 172.30 170.50 105.82
10/01/99 168.54 168.51 105.83
10/04/99 169.95 171.21 107.62
10/05/99 170.89 169.03 107.36
10/06/99 170.89 169.20 109.34
10/07/99 171.36 167.21 108.70
10/08/99 170.89 164.30 110.22
10/11/99 178.40 164.31 110.15
10/12/99 176.53 165.03 108.32
10/13/99 177.46 163.46 106.05
10/14/99 176.06 162.39 105.88
10/15/99 175.12 157.75 102.91
10/18/99 175.12 156.36 103.46
10/19/99 173.24 158.88 104.05
10/20/99 171.36 163.28 106.37
10/21/99 170.42 164.15 105.89
10/22/99 169.01 165.02 107.38
10/25/99 170.42 163.57 106.72
10/26/99 173.71 160.74 105.75
10/27/99 175.12 163.92 106.97
10/28/99 173.71 168.69 110.75
10/29/99 175.12 174.64 112.44
11/01/99 174.65 173.26 111.71
11/02/99 173.24 176.04 111.18
11/03/99 177.00 173.86 111.78
11/04/99 175.59 174.90 112.41
11/05/99 175.12 181.07 113.04
11/08/99 176.06 178.41 113.60
11/09/99 176.06 178.24 112.63
11/10/99 175.59 180.05 113.30
11/11/99 174.65 181.64 113.96
11/12/99 175.59 182.63 115.17
11/15/99 179.81 185.01 115.03
11/16/99 165.26 188.68 117.15
11/17/99 149.77 186.75 116.38
11/18/99 150.23 189.46 117.55
11/19/99 149.77 188.69 117.31
11/22/99 142.25 185.88 117.22
11/23/99 131.92 180.50 115.88
11/24/99 131.46 174.67 116.90
11/25/99 131.46 174.67 116.90
11/26/99 130.52 174.06 116.86
11/29/99 126.76 173.51 116.14
11/30/99 122.54 178.99 114.58
12/01/99 125.35 181.55 115.31
12/02/99 127.70 182.44 116.24
12/03/99 133.33 183.68 118.24
12/06/99 129.11 183.77 117.42
12/07/99 127.23 188.84 116.25
12/08/99 131.92 190.11 115.81
12/09/99 130.52 193.91 116.16
12/10/99 127.23 186.42 116.90
12/13/99 127.70 184.86 116.75
12/14/99 127.70 184.11 115.75
12/15/99 125.82 187.99 116.59
12/16/99 127.23 183.31 117.04
12/17/99 129.58 191.94 117.23
12/20/99 134.27 199.04 116.99
12/21/99 135.21 207.53 118.25
12/22/99 133.80 203.06 118.47
12/23/99 135.21 202.55 120.31
12/24/99 135.21 202.55 120.31
12/27/99 134.74 209.33 120.20
12/28/99 133.80 209.15 120.25
12/29/99 128.64 208.63 120.73
12/30/99 125.82 212.77 120.81
12/31/99 130.52 220.66 121.21
1/03/00 127.70 217.34 120.05
1/04/00 127.70 211.58 115.45
1/05/00 126.76 214.21 115.67
1/06/00 127.70 216.25 115.78
1/07/00 127.70 222.05 118.91
1/10/00 125.82 234.48 120.25
1/11/00 127.70 232.39 118.67
1/12/00 123.94 236.32 118.15
1/13/00 126.29 243.69 119.59
1/14/00 126.76 254.90 120.87
26.8% 154.9% 20.9%
- ----------
(a) Composite includes AES, Calpine and Thermo Ecotek.
-4-
PROJECT TRUST III. Recent Events and Market Data
- --------------------------------------------------------------------------------
Trigen Three-Year Price/Volume Histogram
(1/14/97 to 1/14/00)
Total Volume Traded: 7,793,800 Shares
[GRAPHIC OMITTED]
[The following table was depicted as a bar graph in the printed material.]
3 Year
0 11.99 13.99 15.99 17.99 19.99 21.99 23.99 25.99 27.99
11.99 13.99 15.99 17.99 19.99 21.99 23.99 25.99 27.99 50 TOTAL
374,600 1,281,300 917,200 2,010,600 825,200 318,100 1,485,600 519,000 60,400 1,800 7,793,800
Cumulative
Percent Traded 4.8% 21.2% 33.0% 58.8% 69.4% 73.5% 92.5% 99.2% 100.0% 100.0%
-5-
PROJECT TRUST III. Recent Events and Market Data
- --------------------------------------------------------------------------------
Trigen Two-Year Price/Volume Histogram
(1/14/98 to 1/14/00)
Total Volume Traded: 5,787,700 Shares
[GRAPHIC OMITTED]
[The following table was depicted as a bar graph in the printed material.]
2 Year
0 11.99 13.99 15.99 17.99 19.99 21.99 23.99 25.99 27.99
11.99 13.99 15.99 17.99 19.99 21.99 23.99 25.99 27.99 50 TOTAL
374,600 1,281,300 917,200 1,998,900 434,300 58,000 723,400 0 0 0 5,787,700
Cumulative
Percent Traded 6.5% 28.6% 44.5% 79.0% 86.5% 87.5% 100.0%
-6-
PROJECT TRUST III. Recent Events and Market Data
- --------------------------------------------------------------------------------
Trigen One-Year Price/Volume Histogram
(1/14/99 to 1/14/00)
Total Volume Traded: 2,835,800 Shares
[GRAPHIC OMITTED]
[The following table was depicted as a bar graph in the printed material.]
1 Year
0 11.99 13.99 15.99 17.99 19.99 21.99 23.99 25.99 27.99
11.99 13.99 15.99 17.99 19.99 21.99 23.99 25.99 27.99 50 TOTAL
5,200 468,400 411,200 846,300 323,300 58,000 723,400 0 0 0 2,835,800
Cumulative
Percent Traded 0.2% 16.7% 31.2% 61.0% 72.4% 74.5% 100.0%
-7-
PROJECT TRUST III. Recent Events and Market Data
- --------------------------------------------------------------------------------
Shareholder Profile
As Reported
----------------------------
Institutional Holders Shares Held % of Total
----------- ----------
Dimensional Fund Advisors 868,500 7.0%
Investment Counselors of Maryland 780,000 6.3
Benson Associates, LLC 411,381 3.3
Denver Investment Advisors 161,900 1.3
Martindale Andres & Co. 136,900 1.1
California Public Employees' Retirement System 134,100 1.1
Loomis Sayles & Co. 121,400 1.0
Accrued Equities 75,000 0.6
Westpeak Investment Advisors, L.P. 71,500 0.6
Barclays Global Investors 61,000 0.5
Other 363,336 2.9
---------- -----
Total Institutional Ownership 3,185,017 25.7%
Suez Lyonnaise des Eaux and Affiliates 6,507,944 52.5%
Insiders
Thomas R. Casten 1,094,457 8.8%
Eugene E. Murphy 243,493 2.0
Other Insiders 397,671 3.2
---------- -----
Total Insiders 1,735,621 14.0%
Retail 978,520 7.9%
---------- -----
Total Shares Outstanding 12,407,102 100.0%
========== =====
- ----------
Source: Trigen 10-Q dated 9/30/99 and Morrow & Co. as of November 1999.
-8-
PROJECT TRUST III. Recent Events and Market Data
- --------------------------------------------------------------------------------
Options and Restricted Stock Information
Options
Outstanding Options(a)
- ---------------------------------------------------------------------- Diff. Between
Average Offer Price and Cost to
Range of Average Exercise Offer Avg. Exercise Exercise
Exercise Prices Options Life(b) Price Price Price Options(c)
- ------------------- ------- ------- -------- ----- --------------- ----------
$11.88 - $19.75 735,210 8.1 $16.40 $23.50 $7.10 $5,219,991
20.00 - 24.00 54,200 7.4 21.55 23.50 1.95 105,690
24.25 - 27.75 19,500 8.4 25.43 23.50 -- --
Total 808,910 8.0 $18.89 $5,325,681
o The cost to exercise the options will be equal to the difference between
the offer price and the exercise price multiplied by the number of options
(vested and non-vested) or approximately $5.3 million.
o Note that if the offer price is less than or equal to the exercise price,
those options shall be cancelled.
Restricted Stock
Restricted Offer Payment
Stock Shares Price at Closing(d)
- ------------ ----- -------------
329,220 $23.50 $1,934,168
- ----------
(a) Information of outstanding options based on Trigen 10-K dated 12/31/98.
(b) Average contractual remaining life of options in years as of 12/31/98.
(c) Includes both vested and non-vested options.
(d) At closing, 25% of the restricted stock shares will be paid. The remaining
restricted shares shall be cancelled.
-9-
PROJECT TRUST III. Recent Events and Market Data
- --------------------------------------------------------------------------------
Selected Research Analyst Comments After Elyo Offer on September 20, 1999
1999 Target
Report Date Research Firm/Analyst EPS Price Rating Selected Quotes
----------- --------------------- --- ----- ------ ---------------
December 7, 1999 BancBoston Robertson Stephens $0.75 NA Buy "We are reducing our 4Q earnings estimate for
Hugh F. Holman Trigen from $0.49 to $0.25 per share. This
reduction is based on two factors. First, we
were just flat out too aggressive in setting
our target for the quarter, and, to hit it,
everything would have had to break right for
the company. Second, the weather thus far in
4Q has been great here in the East- which,
unfortunately, is bad news for a company that
makes money when the weather is cold."
"We are maintaining our Buy rating on this
stock. Despite our disappointment that Elyo
has declined to sweeten its $22/share bid, we
think the fundamentals here remain very
strong as the deregulation of the power
market in the U.S. picks up pace."
December 3, 1999 Salomon Smith Barney $0.80 $21.50 Neutral "We are lowering our rating to Neutral from
Bonnie Becker Outperform due to: 1) concerns about Trigen's
earnings cliff in 2001 caused by the
repricing of Grays Ferry contract, 2) the
withdrawal by majority shareholder Elyo of
its bid for Trigen, and 3) Trigen's premium
valuation to both AES Corp and Calpine Corp,
which we feel is unwarranted."
"We believe that the Elyo offer represented a
fair price for Trigen stock. The offer price
valued Trigen at 9.6x FV/EBITDA. This
compared favorably with the most recent
acquisition of an independent power producer
(IPP), Calpine's acquisition of CogenAmerica,
which valued CogenAmerica at 6.9x EBITDA."
November 18, 1999 DLJ Securities $0.80 $22.00- Market "We maintain that the near-term challenge for
Ali Agha $23.00 Perf. Trigen is the earnings cliff that the company
faces in 2001 arising from the repricing of
the Grays Ferry contract. In recent months,
management has exhibited increasing success
in securing new projects and contracts to
bolster earnings going forward. At this time,
however, we are maintaining our market
performance rating on the stock but will be
closely monitoring management's efforts to
build out a pipeline of future projects to
add to earnings visibility."
September 22, 1999 BancBoston Robertson Stephens $0.99 NA Buy "We suspect that Suez Lyonnaise des Eaux will
Hugh F. Holman end up sweetening its $22/share offer for
Trigen. We base this on several
considerations. First, the market seems to be
telling us that Suez's bid is low, as the
stock immediately traded above $22/share and
has held at a premium to the offer. Second,
the premium offered relative to Trigen's
closing price prior to the offer, 14.3%, is
low relative to what Suez has paid in its
recent buy-in of United Water Resources (54%)
and to what it has offered in two other
buy-ins, Tractebel (24.4%) and Sita (20.3%).
Third, in a comparable transaction now under
way, Calpine's offer to buy 80% of
Cogeneration Corporation of America, Calpine
has offered Cogen a 48.7% premium to its
prior closing price and what appears to us to
be a multiple of estimated forward EBITDA of
8.5-9.5x versus Suez's offer of 7.6x Trigen's
estimated forward EBITDA.
-10-
PROJECT TRUST III. Recent Events and Market Data
- --------------------------------------------------------------------------------
Selected Research Analyst Comments Before Elyo Offer on September 20, 1999
1999 Target
Report Date Research Firm/Analyst EPS Price Rating Selected Quotes
----------- --------------------- --- ----- ------ ---------------
July 29, 1999 Lazard Freres & Co. LLC $0.83 $30.00 Buy "Development and construction activity has
James F. McAree been significant and is expected to continue
growing. Our impression is that the level of
bidding activity continues to increase,
outsourcing contracts are being signed and
the selling-cycle now seems to be
significantly shorter than it was two years
ago. We believe that the company can move
forward with its many projects since the
parent company, ELYO, made a $50 million
subordinated loan at favorable terms to TGN
and Cinergy has committed $150 million to
TGN-Cinergy Solutions projects."
"The 2001 earnings profile is becoming
clearer. Investors should note that about
$0.50 to $0.60 of TGN's 2000 EPS from the
Gray's Ferry project is at risk in 2001 due
to a change in the pricing of electricity
from 4.5 cents per KW to 98% of the PJM
Index. We believe that the company has about
$0.25 of new EPS from the ramp-up of current
projects in 2001 and given the momentum in
the business today we are confident that
management can at least meet their internal
goal of replacing all of the anticipated EPS
decline at Gray's Ferry."
July 28, 1999 BancBoston Robertson Stephens $0.99 NA Buy "We believe the restructuring of the utility
Hugh F. Holman industry will open significant new
opportunities to Trigen in the development of
new industrial and district heating CHP
projects that free customers from the need to
rely on local utilities. By `going off the
grid', these customers will avoid transition
charges and transmission and distribution
charges that grid-connected customers will
incur. Further, we believe that the
environmental benefits of CHP will translate
into an increasingly attractive competitive
advantage as emissions trading places a
monetary value on emissions."
"Based on the current strong momentum in
Trigen's project development activity, we
believe there may yet be an upside to these
[earnings] estimates, possibly to $1.00 in
1999."
"The company also noted that it believes the
selling cycle on new industrial projects is
shortening as decision-making on energy
projects moves to higher echelons in its
client companies-partly as a result of the
energy `buzz' created by utility
deregulation."
"The company indicated that it has at least
three very significant project awards
pending, and management is anticipating an
`active' August (in terms of awards and
announcements)."
June 3, 1999 Lazard Freres & Co. LLC $0.76 $20.00 Buy "Trigen's bidding activity is robust and
James F. McAree contracts are being signed now that
uncertainty surrounding electricity
deregulation is over."
"Trigen and TCS are very well positioned to
win outsourcing contracts and the outsourcing
trend will continue to grow as companies
recognize the potential cost savings now
available."
June 3, 1999 BancBoston Robertson Stephens $0.78 $22.00- Buy "Trigen has scored a major project win with
Hugh F. Holman $29.00 Millenium Chemicals that potentially adds $1
billion in revenues over the next 15-20
years."
"We find ourselves reporting news that could
drive earnings above our current estimates of
$0.78 for 1999 and $1.10 for 2000. We
continue to believe that the upside potential
to earnings in 2000 could be as much as $0.35
per share."
-11-
PROJECT TRUST IV. Financial Projections
- --------------------------------------------------------------------------------
Selected Historical and Projected Financial Data(a)
($ in millions, except per share data)
Projected
----------------------------------------------------------- CAGR
1998A 1999E 2000 2001 2002 2003 2004 2005 1999-2005
----- ----- ---- ---- ---- ---- ---- ---- ---------
Selected Income Statement Data
Revenues $ 242.4 $ 286.0 $375.5 $403.4 $421.6 $436.9 $446.4 $453.0 7.9%
% Growth 18.0% 31.3% 7.4% 4.5% 3.6% 2.2% 1.5%
EBITDA 57.0 66.4 99.0 100.0 107.4 111.2 112.6 112.9 9.2
% Margin 23.5% 23.2% 26.4% 24.8% 25.5% 25.4% 25.2% 24.9%
EBIT 31.8 40.4 66.3 63.2 67.9 70.8 71.5 71.2 9.9
% Margin 13.1% 14.1% 17.7% 15.7% 16.1% 16.2% 16.0% 15.7%
Net Income 6.3(b) 11.7(c) 16.1 11.5 13.5 16.7 18.8 20.0 9.4
% Margin 2.6% 4.1% 4.3% 2.8% 3.2% 3.8% 4.2% 4.4%
% Growth 58.2% 37.6 (28.5) 17.9 23.5 12.3 6.5
Earnings per Share (d) $ 0.52(b) $ 0.94(c) $ 1.30 $ 0.93 $ 1.09 $ 1.35 $ 1.52 $ 1.61 9.4%
% Growth 80.7% 37.6% (28.5)% 17.9% 23.5% 12.3% 6.5%
Selected Cash Flow Data
Depreciation and
Amortization $ 25.2 $ 26.0 $ 32.7 $ 36.7 $ 39.6 $ 40.4 $ 41.1 $ 41.7
Working Capital Decrease/
(Increase) 0.1 (17.0) 6.4 0.5 (1.9) (2.3) (2.7) (10.2)
Capital Expenditures (109.1) (137.1) (93.6) (69.0) (11.5) (10.9) (5.0) (4.1)
- ----------
(a) Source: Trigen Medium Term Plan- Committed Case dated January 8, 2000.
(b) Includes extraordinary loss of $0.3 million net of tax.
(c) Includes extraordinary loss of $4.9 million net of tax.
(d) EPS for 1999 and beyond based on 12.4 million basic shares outstanding as
of 10-Q dated 9/30/99.
-12-
PROJECT TRUST V. Summary Valuation
- --------------------------------------------------------------------------------
Valuation Ranges
Premium/(Discount) to
Implied Market Value ---------------------
Enterprise Value Per Share (a)(b) Current Price (c)
-------------------- -------------------- ---------------------
Low High Low High Low High
----- ------ ----- ------ ----- ------
--------------------
A. Public Market Valuation $665 -- $730 $15.17 -- $20.28 (10.8%) -- 19.3%
B. Comparable Transactions Valuation $695 -- $765 $17.53 -- $23.03 3.1% -- 35.5%
C. Discounted Cash Flow Analysis $710 -- $775 $18.71 -- $23.82 10.0% -- 40.1%
D. Minority Buy-out Transaction Valuation $715 -- $750 $19.08 -- $21.99 12.3% -- 29.4%
--------------------
- ------------------
(a) Based on 12.7 million fully diluted shares.
(b) Market value defined as Enterprise Value less net debt of $472 million.
Net debt defined as short term and long term debt, plus minority interest,
plus preferred stock less cash.
(c) Based on a share price of $17.00 as of 1/18/00.
-13-
PROJECT TRUST V. Summary Valuation
- --------------------------------------------------------------------------------
Valuation Ranges (cont'd)
[The following table was depicted as a bar graph in the printed material.]
Public Market Comparable Transactions Discounted Cash Minority Buy-Out
Current Price(a) Valuation Valuation Flow Analysis Transaction Valuation
$17.00 $15.17 $17.53 $18.71 $19.08
$20.28 $23.03 $23.82 $21.99
- ----------
(a) As of 1/18/00.
-14-
PROJECT TRUST V. Summary Valuation
- --------------------------------------------------------------------------------
Analysis at Various Prices
($ in millions, except per share data)
Premium to Market Value
-------------------------------------------------------------------------
0% 10% 20% 30% 40%
-------------------------------------------------------------------------
Stock Price $ 17.00 (g) $ 18.70 $ 20.40 $ 22.10 $ 23.80
Primary Shares Outstanding (a) 12.4 12.4 12.4 12.4 12.4
Options (b)(c) 0.7 0.7 0.7 0.8 0.8
Restricted Stock (f) 0.1 0.1 0.1 0.1 0.1
Fully Diluted Gross Shares 13.2 13.2 13.2 13.3 13.3
Options Proceeds (c) $ 12.1 $ 12.1 12.1 13.2 13.2
Market Value $ 212.8 $ 235.2 $ 257.7 $ 280.2 $ 302.8
Net Debt (d) 472.1 472.1 472.1 472.1 472.1
------- ------- ------- ------- -------
Enterprise Value $ 684.8 $ 707.3 $ 729.8 $ 752.3 $ 774.9
======= ======= ======= ======= =======
Enterprise Value as a Multiple of
Revenues (e)
1999 $ 286.0 2.4 x 2.5 x 2.6 x 2.6 x 2.7 x
2000 $ 375.5 1.8 1.9 1.9 2.0 2.1
EBITDA (e)
1999 $ 66.4 10.3 x 10.7 x 11.0 x 11.3 x 11.7 x
2000 $ 99.0 6.9 7.1 7.4 7.6 7.8
EBIT (e)
1999 $ 40.4 16.9 x 17.5 x 18.1 x 18.6 x 19.2 x
2000 $ 66.3 10.3 10.7 11.0 11.3 11.7
Market Value as a Multiple
of Net Income (e)
1999 $ 11.7 18.2 x 20.1 x 22.1 x 24.0 x 25.9 x
2000 $ 16.1 13.2 14.6 16.0 17.4 18.8
Book Value (e)
1999 $ 164.6 1.3 x 1.4 x 1.6 x 1.7 x 1.8 x
2000 $ 180.5 1.2 1.3 1.4 1.6 1.7
- ----------
(a) Based on Trigen 10-Q dated September 30, 1999.
(b) Options based on outstanding "in-the-money" options as of Trigen's 10-K
dated 12/31/98.
(c) Outstanding options and their respective strike prices as of 12/31/98 10-K
are as follows: 735,210 at $16.40, 54,200 at $21.55, and 19,500 at $25.43.
(d) Net debt defined as short term and long term debt, plus minority interest,
plus preferred stock, less cash, based on Trigen Medium Term Plan-
Committed Case dated January 8, 2000. Net Debt comprised of $49.8 million
of current debt, $417.8 million of long term debt, $19.4 million minority
interest, less $15.0 million of cash as of December 1999.
(e) Source: Trigen Medium Term Plan- Committed Case dated January 8, 2000.
(f) Represents 25% of the 329,200 total shares of restricted stock.
(g) Closing price on 1/18/00.
-15-
PROJECT TRUST V. Summary Valuation
- --------------------------------------------------------------------------------
Historical Share Price Information
- --------------------------------------------------------------------------------
Trigen Energy Corp.
================================================================================
Current Price (1/18/00) $17.00
1999 High (11/15/99) $23.94
1999 Low (1/4/99) $11.38
52 Week High (11/15/99) $23.94
52 Week Low (1/28/99) $11.81
Average for December 1999 $17.32
Average for November 1999 $21.13
Average for October 1999 $23.03
3 Month Average* $19.38
- ----------
* Based on average closing price from 10/18/99 to 1/18/00
-16-
PROJECT TRUST V. Summary Valuation
- --------------------------------------------------------------------------------
Summary of Premiums Paid in Minority Buyout Transactions
(all numbers reflect medians)
Premium of Initial Bid to: Premium of Final Bid to:
--------------------------------------- ---------------------------------------
One Day Prior One Month Prior One Day Prior One Month Prior
Stake Purchased # of Deals to Annnouncement to Annnouncement to Annnouncement to Annnouncement
- --------------- ---------- ---------------- ---------------- ---------------- ----------------
Less than 5% 1 6.3% 7.7% 14.8% 16.3%
5.0% to 9.9% 3 (5.9%) 5.5% 12.3% 91.6%
10.0% to 14.9% 5 15.5% 15.0% 25.0% 26.7%
15.0% to 19.9% 15 10.2% 23.8% 20.4% 30.9%
20.0% to 49.9% 37 14.3% 19.0% 18.2% 26.2%
----
- ------------------------------------------------------------------------------------------------------------------------------------
Overall 61 11.4% 19.0% 19.3% 29.2%
- ------------------------------------------------------------------------------------------------------------------------------------
-17-
PROJECT TRUST VI. Appendix A
- --------------------------------------------------------------------------------
Public Market Valuation
($ in millions)
Low High
------- -------
----------------------
Rounded Enterprise Value Range (a) $665 - $730
----------------------
Enterprise Value Range $664 - $730
Less: Net Debt (b) (472) - (472)
------- -------
Market Value (c) $193 - $258
Price Per Share (d) $15.17 $20.28
Public Market Multiple Benchmarks
-----------------------------------------------
MidAmerican Thermo Group
Enterprise Value as a Multiple of Energy (f) Calpine Ecotek Median (g)
----------- ------- ------ ----------
EBITDA (e)
-----------------------
1999 $66.4 10.0 x - 11.0 x 8.1 x 26.9 x 4.5 x 13.7 x
-----------------------
2000 $99.0 6.7 - 7.4 7.2 17.6 4.1 9.6
EBIT (e)
1999 $40.4 16.4 x - 18.1 x 13.5 x 36.4 x 8.4 x 18.2 x
2000 $66.3 10.0 - 11.0 12.0 23.5 7.3 13.3
Market Value as a Multiple of
Net Income (e)
1999 $11.7 16.5 x - 22.1 x 12.7 x 53.1 x 12.9 x 12.9 x
2000 $16.1 12.0 - 16.0 10.9 42.5 11.3 11.3
Book Value (e)
1999 $164.6 1.2 x - 1.6 x 1.8 x 9.6 x 1.0 x 6.9 x
2000 $180.5 1.1 - 1.4
- ----------
(a) Enterprise Value defined as Market Value of Common Equity plus short term
and long term debt, plus minority interest, plus preferred stock, less
cash.
(b) Net debt defined as short term and long term debt, plus minority interest,
plus preferred stock, less cash, based on Trigen Medium Term Plan-
Committed Case dated January 8, 2000. Net Debt comprised of $49.8 million
of current debt, $417.8 million of long term debt, $19.4 million minority
interest, less $15.0 million of cash as of December 1999.
(c) Market Value defined as Enterprise Value less net debt.
(d) Based on 12.7 million fully diluted shares.
(e) Source: Trigen Medium Term Plan- Committed Case dated January 8, 2000.
(f) Based on the price per share on 10/22/99, which was one day before the
company announced it would be acquired.
(g) Group median based on a larger set of companies on the following page.
-18-
PROJECT TRUST VI. Appendix A
- --------------------------------------------------------------------------------
Public Market Valuation (cont'd)
($ in millions)
Trigen Group Group MidAmerican
Energy Mean Median AES Energy Calpine
------ ---- ------ --- ------ -------
LTM Ended Sep-99 Sep-99 Sep-99 Sep-99
Fiscal Year Ended Dec-98 Dec-98 Dec-98 Dec-98
Current Market Information
------ -------
Ticker TGN AES MEC CPN
Price as of 01/18/2000 $17.00 $77.94 $27.25 (e) $85.00
52 Wk High 24.19 83.38 35.75 86.63
52 Wk Low 11.50 32.81 26.44 14.41
Current Price as a % of 52 Week High 70.3% 76.9% 76.2% 93.5% 76.2% 98.1%
Shares Outstanding 12.7 (f) 206.4 61.2 62.9
Indicated Dividend $0.14 $0.00 $0.00 $0.00
Payout Ratio 10.1% 0.0% 0.0% 0.0%
Dividend Yield 0.8% 0.0% 0.0% 0.0%
Market Value (a) $215 $16,085 $1,667 $5,346
Market Capitalization (b) 687 24,702 8,596 6,863
- ------------------------------------------------------------------------------------------------------------------------------------
Market Capitalization as a Multiple of:
LTM Net Sales 2.6 x 5.3 4.3 8.9 x 2.4 x 9.4 x
1999E 2.4 5.5 5.1 8.2 2.1 10.4
2000E 1.8 3.8 3.1 4.3 1.8 7.8
LTM EBITDA 10.2 x 14.3 x 9.9 x 22.4 x 9.4 x 24.3 x
1999E 10.4 14.7 13.7 19.4 8.1 26.9
2000E 6.9 10.2 9.6 12.0 7.2 17.6
LTM EBIT 16.8 x 20.9 x 16.2 x 28.2 x 16.2 x 34.0 x
1999E 17.0 20.3 18.2 23.0 13.5 36.4
2000E 10.4 14.3 13.3 14.5 12.0 23.5
- ------------------------------------------------------------------------------------------------------------------------------------
Price as a Multiple of: MGMT. I/B/E/S
LTM EPS 12.2 x 29.9 x 15.7 x 67.5 x 9.0 x 51.4 x
1999E (I/B/E/S) 18.1 (a) 21.3 x 26.1 12.9 41.0 12.7 53.1
2000E (I/B/E/S) 13.1 (a) 14.2 20.1 11.3 26.4 10.9 42.5
Book Value per Share 1.3 x 6.0 x 6.9 x 10.7 x 1.8 x 9.6 x
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Leverage Ratios:
ST + LT Debt/Total Book Cap 71.8% 70.7% 74.1% 72.1% 79.7% 74.1%
Net Debt/Market Cap 65.8% 44.4% 28.8% 28.8% 72.5% 21.8%
Total Debt/LTM EBITDA 7.0 x 5.8 x 7.0 x 7.1 x 7.0 x 5.9 x
- ------------------------------------------------------------------------------------------------------------------------------------
Summary Capitalization 12/31/1999 (g) 09/30/1999 09/30/1999 09/30/1999
-------------- ---------- ---------- ----------
Cash & Investments $ 15 $702 $167 $174
Short-Term Debt 50 8% 7% 8% 968 9% 100 1% 0 0%
Long-Term Debt 418 64% 53% 64% 6,837 63% 6,298 78% 1,667 74%
Minority Interest 19 3% 4% 4% 964 9% 0 0% 24 1%
Preferred Equity 0 0% 2% 0% 550 5% 699 9% 0 0%
Common Equity 165 25% 34% 25% 1,502 14% 933 12% 558 25%
----- ------- ------ ------
Capitalization $652 100% $10,821 100% $8,030 100% $2,249 100%
===== ------ ------- ======= ====== ======
Cogeneration Thermo
Corp of Amer. Ecotek
------------- ------
LTM Ended Sep-99 Oct-99
Fiscal Year Ended Dec-98 Oct-99
Current Market Information
Ticker CGCA TCK
Price as of 01/18/2000 $16.81 (b) $5.44
52 Wk High 25.13 10.88
52 Wk Low 7.94 5.00
Current Price as a % of 52 Week High 66.9% 50.0%
Shares Outstanding 6.9 36.0
Indicated Dividend $0.00 $0.00
Payout Ratio 0.0% 0.0%
Dividend Yield 0.0% 0.0%
Market Value (a) $115 $196
Market Capitalization (b) 411 285
- -------------------------------------------------------------------------
Market Capitalization as a Multiple of:
LTM Net Sales 4.3 x 1.4 x
1999E NA 1.3
2000E NA 1.2
LTM EBITDA 9.9 x 5.6 x
1999E NA 4.5
2000E NA 4.1
LTM EBIT 14.1 x 11.9 x
1999E NA 8.4
2000E NA 7.3
- -------------------------------------------------------------------------
Price as a Multiple of:
LTM EPS 15.7 x 6.0 x
1999E (I/B/E/S) 10.8 12.9
2000E (I/B/E/S) 9.6 11.3
Book Value per Share 6.9 x 1.0 x
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
Leverage Ratios:
ST + LT Debt/Total Book Cap 94.8% 32.8%
Net Debt/Market Cap 72.0% 27.0%
Total Debt/LTM EBITDA 7.2 x 1.9 x
- -------------------------------------------------------------------------
Summary Capitalization 09/30/1999 10/02/1999
---------- ----------
Cash & Investments $5 $22
Short-Term Debt 29 9% 38 12%
Long-Term Debt 272 86% 61 20%
Minority Interest 0 0% 13 4%
Preferred Equity 0 0% 0 0%
Common Equity 17 5% 191 63%
---- ----
Capitalization $318 100% $302 100%
==== ====
-19-
PROJECT TRUST VI. Appendix A
- --------------------------------------------------------------------------------
Public Market Valuation (cont'd)
($ in millions)
Trigen MidAmerican Cogeneration Thermo
Energy AES Energy Calpine Corp of Amer. Ecotek
------ --- ------ ------- ------------- ------
Net Sales
2000E 375.5(a) 5,700.3 (a) 4,816.7 (a) 875.5 (a) NA 230.0 (a)
1999E 286.0(a) 3,006.9 (a) 4,136.1 (a)(b) 657.0 (a) NA 226.4 (a)
LTM 266.8 2,771.0 3,617.0 729.3 94.8 205.5
1998 242.4 2,398.0 2,566.2 (d) 528.1 74.0 209.0
1997 240.7 1,411.0 2,210.3 (d) 247.5 64.8 180.2
1996 243.6 835.0 NA 205.9 96.5 150.1
EBITDA
2000E 99.0(a) 2,057.9 (a) 1,191.5 (a) 390.5 (a) NA 69.1
1999E 66.4(a) 1,274.2 (a) 1,063.0 (a)(b) 255.5 (a) NA 63.6
LTM 67.1 1,101.5 (b) 911.7 (c) 282.0 41.6 50.8 (b)
1998 57.0 1,161.0 836.3 (d) 221.0 36.8 73.2
1997 44.8 608.0 756.6 (d) 144.0 24.3 68.7
1996 42.4(b) 392.0 NA 103.4 21.5 56.4
Depreciation & Amortization
2000E 32.7(a) 358.8 (a) 473.9 (a) 99.0 (a) NA 30.1 (c)
1999E 26.0(a) 198.2 (a) 426.4 (a) 67.0 (a) NA 29.6 (c)
LTM 26.1 226.5 (b) 382.0 80.0 12.5 26.9 (b)
1998 25.2 196.0 333.4 (d) 74.3 9.8 23.9
1997 16.0 114.0 276.0 (d) 46.8 7.8 21.6
1996 7.6 65.0 NA 36.6 9.4 20.4
-20-
PROJECT TRUST VI. Appendix A
- --------------------------------------------------------------------------------
Public Market Valuation (cont'd)
($ in millions)
Trigen MidAmerican Cogeneration Thermo
Energy AES Energy Calpine Corp of Amer. Ecotek
------ --- ----------- ------- ------------- ------
EBIT (c)
2000E 66.3 (a) 1,699.1 (a) 717.5 (a) 291.5 (a) NA 39.0 (a)
1999E 40.4 (a) 1,076.0 (a) 636.6 (a)(b) 188.5 (a) NA 34.0 (a)
LTM 41.0 875.0 529.7 (c) 201.9 29.1 23.9 (b)
1998 31.8 965.0 502.8 (d) 146.7 27.0 49.3
1997 28.7 494.0 480.6 (d) 97.2 16.5 47.1
1996 34.8 (b) 327.0 NA 66.8 12.1 35.9
Net Income (d)
2000E 16.1 (a) 666.7 (a) 183.7 (a) 103.1 (a) NA 19.8 (a)
1999E 11.7 (a)(e) 379.1 (a) 138.5 (a)(b) 67.1 (a) NA 26.0 (a)
LTM 17.2 (c)(d) 208.0 180.7 (c) 79.0 (b) 7.3 (a) 13.9 (b)(d)
1998 6.3 (d) 307.0 (c) 137.5 (d) 46.3 (b) 8.0 35.3 (d)
1997 5.0 188.0 (c) 138.9 (d) 34.7 23.4 22.5
1996 8.7 (b) 125.0 NA 18.7 (17.7) 17.8
EPS (e) MGMT. I/B/E/S
----- -------
2000E (I/B/E/S) 1.30 (a) 1.20 2.95 2.49 2.00 1.76 0.48
1999E (I/B/E/S) 0.94 (a)(e) 0.80 1.90 2.15 1.60 1.55 0.42
LTM 1.39 (c)(d) 1.16 3.03 1.65 (b) 1.07 0.90 (b)(d)
1998 0.52 (d) 1.73 2.29 1.15 (b) 1.17 0.90 (d)
1997 0.41 1.13 2.06 0.87 3.59 0.58
1996 0.74 (b) 0.82 NA 0.72 (4.24) 0.49
-21-
PROJECT TRUST VI. Appendix A
- --------------------------------------------------------------------------------
Public Market Valuation (cont'd)
($ in millions)
Trigen Group Group MidAmerican Cogeneration Thermo
Energy Mean Median AES Energy Calpine Corp of Amer. Ecotek
------ ---- ------ --- ------ ------- ------------- ------
----- -----
I/B/E/S Est.5 Year Growth Rate (e) 12.0% 18.8% 19.5% 27.0% 12.0% 30.0% NA NA
Net Sales Growth
2000E 31.3% 28.6% 16.5% 89.6% 16.5% 33.3% NA 1.6%
1999E 7.2% 5.1% 8.5% 8.5% 14.4% (9.9%) NA 10.2%
LTM 10.1% 20.4% 21.8% 15.6% 40.9% 38.1% 28.1% (1.7%)
1998 0.7% 38.8% 16.0% 70.0% 16.1% 113.4% 14.2% 16.0%
1997 (1.2%) 15.9% 20.1% 69.0% NA 20.2% (32.9%) 20.1%
EBITDA Margin
2000E 26.4% 33.7% 33.0% 36.1% 24.7% 44.6% NA 30.0%
1999E 23.2% 33.4% 31.8% 42.4% 25.7% 38.9% NA 28.1%
LTM 25.2% 34.5% 36.7% 39.8% 25.2% 38.7% 43.9% 24.7%
1998 23.5% 40.4% 38.4% 48.4% 32.6% 41.8% 49.7% 35.0%
1997 18.6% 40.8% 37.8% 43.1% 34.2% 58.2% 37.5% 38.2%
1996 17.4% 38.4% 37.6% 46.9% NA 50.2% 22.3% 37.6%
EBIT Margin
2000E 17.7% 22.6% 18.1% 29.8% 14.9% 33.3% NA 17.0%
1999E 14.1% 22.4% 17.2% 35.8% 15.4% 28.7% NA 15.0%
LTM 15.4% 22.6% 23.6% 31.6% 14.6% 27.7% 30.7% 11.6%
1998 13.1% 27.9% 25.7% 40.2% 19.6% 27.8% 36.5% 23.6%
1997 11.9% 27.7% 25.8% 35.0% 21.7% 39.3% 25.4% 26.2%
1996 14.3% 25.7% 24.0% 39.2% NA 32.4% 12.5% 24.0%
Net Income Margin
2000E 4.3% 9.4% 11.3% 11.7% 3.8% 11.8% NA 8.6%
1999E 4.1% 9.6% 10.2% 12.6% 3.3% 10.2% NA 11.5%
LTM 6.4% 7.9% 7.6% 7.5% 5.0% 10.8% 7.7% 6.8%
1998 2.6% 10.7% 10.3% 12.8% 5.4% 8.8% 10.8% 16.9%
1997 2.1% 15.2% 12.9% 13.3% 6.3% 14.0% 36.0% 12.5%
1996 3.6% 11.4% 10.9% 15.0% NA 9.1% NM 11.8%
EPS Growth
LTM 167.2% 25.4% 32.6% NM 32.6% 43.8% NM 0.0%
LFY 25.8% 31.5% 32.3% 54.1% 10.8% 32.3% NM 54.9%
LFY-1 NM 25.3% 20.1% 36.9% NA 20.1% NM 18.8%
----- -----
-22-
PROJECT TRUST VI. Appendix A
- --------------------------------------------------------------------------------
Public Market Valuation (cont'd)
($ in millions)
Footnotes:
General:
(a) Market Value defined as shares outstanding multipled by current
stock price.
(b) Market Capitalization defined as Market Value of Common Equity plus
debt, plus minority interest, plus preferred, less cash.
(c) EBIT defined as Earnings Before Interest and Taxes excluding
nonrecurring income and including each company's share of equity in
earnings of unconsolidated affiliates.
(d) Net Income defined as net income from continuing operations
available to common shareholders.
(e) All EPS etimates are based on I/B/E/S median estimates as of January
18, 2000.
Trigen Energy
(a) Source: Trigen Medium Term Plan- Committed Case dated January 8,
2000.
(b) Excludes $6.4 million from a condemnation award and a $1.9 project
financing fee, tax effected at 35% when applicable.
(c) Excludes pre- tax gains of $14.5 million from the settlement of
Grey's Ferry litigation, tax-affected at 40%.
(d) Includes extraordinary loss of $0.3 million from extinguishment of
debt, net of tax.
(e) Includes cumulative effect of change in accounting principle of $4.9
million, net of tax.
(f) Represents fully diluted shares.
(g) Trigen capitalization based on estimated December 1999 figures as
per management.
AES
(a) Source: BancBoston Robertson Stephens research report dated October
20, 1999.
(b) D&A estimated as a percentage of historical sales * LFP and LFP-4
actual sales.
(c) Excludes loss/gain on extinguishment of debt, net of taxes.
MidAmerican Energy
(a) Source: Credit Suisse First Boston research report dated September
16, 1999.
(b) Excludes non-recurring gain on sale of assets, net of taxes when
appropriate.
(c) Excludes gain on sale of qualified facilities of $20.173 million and
gain on sale of McLeod of $78.223 million, tax affected at 35%.
(d) Proforma historical data from Credit Suisse First Boston research
dated July 30, 1999. Historical numbers reflect the recent sale of
assets (1999).
However, these historical numbers do not correspond to MidAmerican
Energy's actual financial statements.
(e) Represents the price per share on 10/22/99, which was one day before
the company announced it would be acquired.
Calpine
(a) Source: Donaldson, Lufkin & Jenrette research report dated August
30, 1999.
(b) Excludes charge for retirement of debt, net of tax.
Cogeneration Corp. of America
(a) Excludes gain from settlement of litigation of $14.5 million, tax
affected at 35%.
(b) Represents the price per share on 8/26/99, which was one day before
the company announced it would be acquired.
Thermo Ecotek
(a) Source: Barrington Research Associates, Inc. research report dated
May 10, 1999. Calendarized to 12/31 yearend, assuming I/B/E/S growth
rate in 2001E.
(b) Excludes restructuring and reorganization charges, tax effected at
35% where appropriate.
(c) Calculated as a percentage of historical sales * 1999E & 2000E sales
projected by Barrington Research Associates. (see footnote (a)).
(d) Excludes gain on issuance of stock by subsidiary, tax effected where
appropriate.
-23-
PROJECT TRUST VI. Appendix B
- --------------------------------------------------------------------------------
Comparable Transactions Valuation(a)
($ in millions)
Low High
------ ------
------ ------
Rounded Enterprise Value Range (b) $ 695 - $ 765
------ ------
Enterprise Value Range $ 697 - $ 763
Less: Net Debt (c) (472) - (472)
Market Value (d) $ 223 - $ 293
------ ------
Price Per Share (e) $17.53 $23.03
Comparable Transaction Benchmarks
------------------------------------------------------
Marubeni/ NGC-AES/ Calpine/ Industry
Enterprise Value as a Multiple of Sithe Destec (g) Cogen (g)(i) Median (h)
--------- ---------- ------------ ----------
EBITDA (f)
------------------------------
1999 $ 66.4 10.5 x - 11.5 x 9.1 x 19.0 x 11.1 x 11.1 x
------------------------------
2000 $ 99.0 7.0 - 7.7
EBIT (f)
1999 $ 40.4 17.2 x - 18.9 x 12.0 x 24.2 x 15.6 15.6 x
2000 $ 66.3 10.5 - 11.5
Market Value as a Multiple of
Net Income (f)
1999 $ 11.7 19.1 x - 25.1 x 25.8 x 33.9 x 23.2 25.8 x
2000 $ 16.1 13.9 - 18.2
Book Value (f)
1999 $164.6 1.4 x - 1.8 x 3.8 x 1.5 x 10.8 2.4 x
2000 $180.5 1.2 - 1.6
- ----------
(a) It should be noted that none of the comparable transactions utilized as a
comparison is identical to the transaction contemplated.
(b) Enterprise Value defined as Market Value of Common Equity plus short term
and long term debt, plus minorty interest, plus preferred stock, less
cash.
(c) Net debt defined as short term and long term debt, plus minority interest,
plus preferred stock, less cash, based on Trigen Medium Term Plan-
Committed Case dated January 8, 2000. Net Debt comprised of $49.8 million
of current debt, $417.8 million of long term debt, $19.4 million minority
interest, less $15.0 million of cash as of December 1999.
(d) Market Value defined as Enterprise Value less net debt.
(e) Based on 12.7 million fully diluted shares.
(f) Source: Trigen Medium Term Plan- Committed Case dated January 8, 2000.
(g) Prices established in auctions.
(h) Industry median based on a larger set of transactions on the following
page.
(i) Salomon Smith Barney research dated 12/3/99 values this deal at 6.9x
EBITDA, and BancBoston Robertson Stephens research dated 9/22/99 values
this deal at 8.5 - 9.5x forward EBITDA. Data is not immediately available
to reconcile these figures.
-24-
PROJECT TRUST VI. Appendix B
- --------------------------------------------------------------------------------
Comparable Transactions Valuation(a)
($ in millions)
Announcement Equity Value/ Price/ Price/ Agg Value/
Date Buyer/Target Agg. Value LTM Earnings Book LTM EBIT
- ------------ ------------ ------------- ------------ ------ ----------
8/27/1999 Calpine (b) $ 144 / 23.2 x 10.8 x 15.6 x
Cogeneration Corp. of America 380
2/18/1997 NGC-AES/ $1,229 / 33.9 x 1.5 x 24.2 x
Destec Energy 1,168
2/29/1996 Marubeni/ $ 831 / 25.8 x 3.8 x 12.0 x
Sithe Energies 2,017
5/17/1995 American Tractebel/ $ 191 / 41.9 x 2.3 x 15.7 x
CRSS 218
9/19/1994 CalEnergy/ $ 939 / 15.7 x 2.4 x 11.4 x
Magma Power 1,054
Mean: 28.1 x 4.2 x 15.8 x
Median: 25.8 x 2.4 x 15.6 x
High: 41.9 x 10.8 x 24.2 x
Low: 15.7 x 1.5 x 11.4 x
Premium Premium
Announcement Agg Value/ Agg Value/ One Month One Day
Date Buyer/Target LTM EBITDA LTM Revenues Prior Prior
8/27/1999 Calpine (b) 11.1 x (c) 5.0 x 41.8 % 48.7 %
Cogeneration Corp. of America
2/18/1997 NGC-AES/ 19.0 x 2.0 x 34.3 % 11.0 %
Destec Energy
2/29/1996 Marubeni/ 9.1 x 2.9 x 122.2 % 155.3 %
Sithe Energies
5/17/1995 American Tractebel/ 12.7 x 7.7 x 52.6 % 45.0 %
CRSS
9/19/1994 CalEnergy/ 9.1 x 5.7 x 38.4 % 37.2 %
Magma Power
Mean: 12.2 x 4.7 x 57.9 % 59.4 %
Median: 11.1 x 5.0 x 41.8 % 45.0 %
High: 19.0 x 7.7 x 122.2 % 155.3 %
Low: 9.1 x 2.0 x 34.3 % 11.0 %
- ----------
(a) It should be noted that none of the comparable transactions utilized as a
comparison is identical to the transaction contemplated.
(b) Equity value and aggregate value represent the 80% of Cogeneration Corp.
of America which Calpine agreed to acquire.
(c) Salomon Smith Barney research dated 12/3/99 values this deal at 6.9x
EBITDA, and BancBoston Robertson Stephens research dated 9/22/99 values
this deal at 8.5 - 9.5x forward EBITDA. Data is not immediately available
to reconcile these figures.
-25-
PROJECT TRUST VI. Appendix C
- --------------------------------------------------------------------------------
Discounted Cash Flow Valuation(a)
($ in millions)
Low High
------ ------
----------------------
Rounded Enterprise Value Range (b) $ 710 - $ 775
----------------------
Enterprise Value Range $ 708 $ 773
Less: Net Debt (c) (472) - (472)
------ ------
Market Value (d) $ 238 $ 303
Price Per Share (e) $18.71 $23.82
Projections
-----------------------------------------------------------------------------
2000 2001 2002 2003 2004 2005
---- ---- ---- ---- ---- ----
Revenues $ 375.5 $ 403.4 $ 421.6 $ 436.9 $ 446.4 $ 453.0
EBITDA 99.0 100.0 107.4 111.2 112.6 112.9
EBIT 66.3 63.2 67.9 70.8 71.5 71.2
Taxes at 41.4% (27.5) (26.2) (28.1) (29.3) (29.6) (29.5)
Net Income (Unlevered) 38.9 37.1 39.8 41.5 41.9 41.7
D&A 32.7 36.7 39.6 40.4 41.1 41.7
Capital Expenditures (93.6) (69.0) (11.5) (10.9) (5.0) (4.1)
Working Capital Decrease/(Increase) 6.4 0.5 (1.9) (2.3) (2.7) (10.2)
-----------------------------------------------------------------------------
Free Cash Flow ($ 15.6) $ 5.2 $ 66.0 $ 68.7 $ 75.2 $ 69.1
-----------------------------------------------------------------------------
NPV of Terminal Value NPV of Enterprise Value
NPV to Perpetuity Growth Rate Perpetuity Growth Rate
Discount 12/31/99 of ------------------------------------------ -----------------------------------------
Rate Cash Flows 0.30% 0.80% 1.30% 1.80% 0.30% 0.80% 1.30% 1.80%
- -------- ---------- ----- ----- ----- ----- ----- ----- ----- -----
8.00% $187.6 $566.2 $605.5 $650.7 $703.3 $753.8 $793.2 $838.4 $890.9
8.25% 185.6 (+) $540.8 $577.1 $618.7 $666.7 726.4 762.8 804.3 852.3
------------------
8.50% 183.7 $517.1 $550.7 $589.0 $632.9 (=) 700.8 734.4 772.6 816.6
8.75% 181.7 $494.9 $526.0 $561.4 $601.8 676.6 707.8 743.1 783.5
------------------
9.00% 179.8 $474.1 $503.0 $535.7 $572.9 653.9 682.8 715.5 752.7
- ----------
(a) Source: Trigen Medium Term Plan- Committed Case dated January 8, 2000.
(b) Enterprise Value defined as Market Value of Common Equity plus short term
and long term debt, plus minorty interest, plus preferred stock, less
cash.
(c) Net debt defined as short term and long term debt, plus minority interest,
plus preferred stock, less cash, based on Trigen Medium Term Plan-
Committed Case dated January 8, 2000. Net Debt comprised of $49.8 million
of current debt, $417.8 million of long term debt, $19.4 million minority
interest, less $15.0 million of cash as of December 1999.
(d) Market Value defined as Enterprise Value less net debt.
(e) Based on 12.7 million fully diluted shares.
-26-
PROJECT TRUST VI. Appendix C
- --------------------------------------------------------------------------------
Weighted Average Cost of Capital
($ in millions)
Levered Unlevered Debt / Mkt. Cap. Net Market Equity
Ticker Company Beta(a) Beta(b) Ratio Debt(c) Value
- ------ ------- ------- --------- ---------------- --- -------------
TGN Trigen Energy 0.54 0.24 68.7% $472 $215
AES AES 0.70 0.54 34.9% 8,617 16,085
CPN Calpine 0.71 0.61 22.1% 1,517 5,346
TCK Thermo Ecotek 0.21 0.17 31.5% 90 196
CGCA Cogeneration of America 0.59 0.29 63.4% 296 171
---- ---- ---- ----- -----
Median 0.64 0.41 33.2% 907 2,771
Assumptions
- -----------------------------------------------
Marginal Tax Rate 41.4%
Risk Free Rate of Return (d) 6.74%
Equity Risk Premium (e) 8.00%
Pre-Tax/After-Tax Cost of Debt
- --------------------------------------------------------------------------
8.00% 8.50% 9.00% 9.50% 10.00% 10.50% 11.00%
4.69% 4.98% 5.27% 5.57% 5.86% 6.15% 6.45%
Median
Debt/ Debt/ Unlevered Levering Levered Cost of ----------------------------------------------------------------
Cap. Equity Beta Factor(f) Beta Equity(g) Weighted Average Cost of Capital(h)
- ---- ------ ---- --------- ---- --------- ----------------------------------------------------------------
10.0% 11.1% 0.41 1.07 0.44 10.3% 9.7% 9.7% 9.8% 9.8% 9.8% 9.8% 9.9%
20.0% 25.0% 0.41 1.15 0.47 10.5% 9.4% 9.4% 9.5% 9.5% 9.6% 9.6% 9.7%
30.0% 42.9% 0.41 1.25 0.52 10.9% 9.0% 9.1% 9.2% 9.3% 9.4% 9.5% 9.5%
40.0% 66.7% 0.41 1.39 0.57 11.3% 8.7% 8.8% 8.9% 9.0% 9.1% 9.3% 9.4%
50.0% 100.0% 0.41 1.59 0.65 12.0% 8.3% 8.5% 8.6% 8.8% 8.9% 9.1% 9.2%
60.0% 150.0% 0.41 1.88 0.78 12.9% 8.0% 8.2% 8.3% 8.5% 8.7% 8.9% 9.0%
70.0% 233.3% 0.41 2.37 0.98 14.6% 7.6% 7.9% 8.1% 8.3% 8.5% 8.7% 8.9%
80.0% 400.0% 0.41 3.34 1.38 17.8% 7.3% 7.5% 7.8% 8.0% 8.2% 8.5% 8.7%
----------------------------------------------------------------
- ----------
(a) BARRA Predicted Beta as of December 1999. Cogeneration of America beta as
of October 1999 because it was acquired in December 1999.
(b) Unlevered Beta = Levered Beta/[1+(1-Tax Rate)(Debt/Equity)]
(c) Net debt includes Short-Term Debt, Long-Term Debt, Preferred Stock, and
Minority Interest, less Cash and Marketable Securities.
(d) Risk Free Rate is 30-Year Treasury Bond Yield as of January 18, 2000.
(e) Represents the long-horizon expected equity risk premium based on simple
differences of historical arithmetic mean returns from 1926-1998 (Ibbotson
Associates' 1999 Yearbook).
(f) Levering Factor = [1 + (1-Tax Rate)(Debt/Equity)]
(g) Cost of Equity = (Risk Free Rate of Return)+(Levered Beta)(Equity Risk
Premium)
(h) Weighted Average Cost of Capital = (After-Tax Cost of
Debt)(Debt/Cap.)+(Cost of Equity)(Equity/Cap.)
-27-
PROJECT TRUST VI. Appendix D
- --------------------------------------------------------------------------------
Minority Buy-out Transactions Valuation
($ in millions, except per share data)
Low High
---- ----
-----------------
Rounded Enterprise Value Range $715 - $750
-----------------
Premium of Initial Bid to: Premium of Final Bid to:
------------------------------------ ------------------------------------
One Day Prior One Month Prior One Day Prior One Month Prior
to Announcement to Announcement to Announcement to Announcement
--------------- --------------- --------------- ---------------
Base Price (a) $17.00 $17.25 $17.00 $17.25
Median Premium
20.0% to 49.9% 14.3% 19.0% 18.2% 26.2%
Overall 11.4 19.0 19.3 29.2
Selected 12.3% 20.0% 20.0% 27.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Price Per Share $19.08 $20.70 $20.40 $21.99
- ------------------------------------------------------------------------------------------------------------------------------------
Fully Diluted Shares Outstanding 12.7 12.7 12.7 12.7
------ ------ ------ ------
Market Value (e) $242.7 $263.3 $259.5 $279.8
Net Debt (d) 472.1 472.1 472.1 472.1
------ ------ ------ ------
Enterprise Value (c) $714.8 $735.4 $731.5 $751.8
====== ====== ====== ======
Enterprise Value as a Multiple of
EBITDA (b)
1999 x $ 66.4 10.8 11.1 x 11.0 x 11.3 x
2000 $ 99.0 7.2 7.4 7.4 7.6
EBIT (b)
1999 x $ 40.4 17.7 18.2 x 18.1 x 18.6 x
2000 $ 66.3 10.8 11.1 11.0 11.3
Market Value as a Multiple of
Net Income (b)
1999 x $ 11.7 20.8 22.5 x 22.2 x 24.0 x
2000 $ 16.1 15.1 16.4 16.1 17.4
Book Value (b)
1999 x $164.6 1.5 1.6 x 1.6 x 1.7 x
2000 $180.5 1.3 1.5 1.4 1.6
- ----------
(a) Represents Trigen's stock price on January 18, 2000 and December 17, 1999
respectively.
(b) Source: Trigen Medium Term Plan- Committed Case dated January 8, 2000.
(c) Enterprise Value defined as Market Value of Common Equity plus net debt.
(d) Net debt defined as short term and long term debt, plus minority interest,
plus preferred stock, less cash, based on Trigen Medium Term Plan-
Committed Case dated January 8, 2000. Net Debt comprised of $49.8 million
of current debt, $417.8 million of long term debt, $19.4 million minority
interest, less $15.0 million of cash as of December 1999.
(e) Market Value defined as fully diluted shares outstanding multipled by the
price per share.
-28-
PROJECT TRUST VI. Appendix D
- --------------------------------------------------------------------------------
Minority Buy-out Transactions Valuation - Cash and Stock Offers
($ in millions, except per share data)
Initital
Date of Stock Price Stock Price 52 Week Premium
Clos- Acquiring Company/Acquired One Month One Day High Prior to Over 52 Week
ing Offer Company Prior to Ann. Prior to Ann. Date of Ann. Ann. High
- ------- ----- -------------------------- ------------- ------------- ------------ ------------- ------------
Cash Boise Cascade/ $ 10.13 $ 14.69 12/02/1999 $ 15.38 (13.8%)
Boise Cascase Office Pr.
Cash Cordant Technologies/ $ 12.31 $ 14.06 11/12/1999 $ 20.31 (16.3%)
Howmet Intl.
Cash Citigroup/ $ 44.63 $ 40.38 10/21/1999 $ 49.06 (8.3%)
Student Loan Corp.
11/99 Cash Warburg, Pincus Ventures/ $ 19.13 $ 15.25 03/24/1999 $ 40.46 (38.2%)
Knoll (Warburg, Pincus)
8/99 Cash Vivendi/ $ 1.44 $ 2.25 04/01/1999 $ 3.31 (39.6%)
Aqua Alliance
7/99 Cash McDermott Intl./ $ 29.88 $ 30.50 05/07/1999 $ 47.00 (24.2%)
J Ray McDermott SA
7/99 Cash Viacom/ $ 6.31 $ 9.00 03/21/1999 $ 9.50 (5.3%)
Spelling Entertainment
5/99 Cash Global TeleSystems $208.87 $198.84 04/14/1999 $208.87 0.9%
Omnicom
4/99 Stock Fairchild $ 7.88 $ 8.75 12/03/1998 $ 13.00 (25.0%)
Banner Aerospace
2/99 Stock Inland Steel $ 19.44 $ 12.50 09/23/1998 $ 22.44 (51.9%)
Ryerson Tull
2/99 Cash Orion N.Z. $ 1.83 $ 2.38 10/29/1998 $ 4.06 (27.1%)
Qest N.Z.
2/99 Cash Affiliated Comp Svcs $ 16.94 $ 16.22 10/16/1998 $ 21.25 (10.6%)
BRC Holdings
2/99 Stock Anglo American $ 12.20 $ 15.33 10/15/1998 $ 38.18 (53.4%)
Anglo American Industrial
12/98 Cash Allmerica Financial/ $ 27.50 $ 27.56 10/27/1998 $ 34.63 (16.2%)
Citizens Corp (Hanover Ins)
12/98 Cash Usinor SA/ $ 5.06 $ 3.02 09/23/1998 $ 14.19 (59.5%)
J&L Specialty Steel
12/98 Cash Billington/Anglo American $ 4.98 $ 6.72 10/14/1998 $ 7.87 0.9%
Samancor
12/98 Cash Disco/Ahold/ $ 4.00 $ 5.22 11/13/1998 $ 15.20 (53.9%)
Disco
12/98 Stock Anglo American $ 48.33 $ 53.30 10/15/1998 $ 62.93 (10.0%)
Anglo American Coal
12/98 Cash Billington/Anglo American $ 0.41 $ 0.40 09/07/1998 $ 1.25 (57.7%)
QNI
11/98 Cash Dow AgroSciences/ $ 18.38 $ 19.75 04/30/1998 $ 25.00 (18.0%)
Mycogen Corp
11/98 Cash Dexter Corporation/ $ 32.81 $ 31.00 07/07/1998 $ 38.50 (3.9%)
Life Technologies
11/98 Stock Reno Dei Medici/ $ 4.55 $ 4.28 02/27/1998 $ 5.02 (20.1%)
Sarrio
10/98 Cash Fiat/Norsk Hydro/ $ 5.52 $ 5.39 05/29/1998 $ 6.17 22.6%
Meridian Technology
10/98 Stock Newmont Mining/ $ 15.69 $ 26.75 09/29/1998 $ 47.00 (48.3%)
Newmont Gold
9/98 Cash/Stock Buhrman/ $ 7.50 $ 10.38 01/20/1998 $ 12.31 (14.7%)
BT Office Products
9/98 Stock Liberty Media/ $ 16.56 $ 21.88 07/13/1998 $ 22.00 9.6%
Tele-Communications International
9/98 Cash Cable Michigan Inc./ $ 10.50 $ 11.00 04/30/1998 $ 11.00 0.0%
Mercom
7/98 Cash Texas Industries/ $ 12.00 $ 12.88 05/22/1997 $ 14.88 (4.2%)
Chaparral Steel
6/98 Cash Waste Management/ 242.0 247.5 06/29/1998 279.0 23.7%
Waste Mangagement Int'l
Aggregate Initial Premium
Date of Inside Ownership Consideration For Over One Month
Clos- Acquiring Company/Acquired Before the Amount Acquired Initial Bid Per Prior Market
ing Offer Company Transaction (000's) Share Price
- ------- ----- -------------------------- ---------------- ----------------- --------------- ----------------
Cash Boise Cascade/ 81.2% $163,900 $ 13.25 30.9%
Boise Cascase Office Pr.
Cash Cordant Technologies/ 84.6% $261,400 $ 17.00 38.1%
Howmet Intl.
Cash Citigroup/ 80.0% $180,000 $ 45.00 0.8%
Student Loan Corp.
11/99 Cash Warburg, Pincus Ventures/ 58.2% $490,800 $ 25.00 30.7%
Knoll (Warburg, Pincus)
8/99 Cash Vivendi/ 77.8% $117,100 $ 2.00 39.1%
Aqua Alliance
7/99 Cash McDermott Intl./ 63.0% $514,500 $ 35.62 19.2%
J Ray McDermott SA
7/99 Cash Viacom/ 80.9% $191,600 $ 9.00 42.6%
Spelling Entertainment
5/99 Cash Global TeleSystems 52.5% $189,800 $210.82 0.9%
Omnicom
4/99 Stock Fairchild 85.0% $ 82,400 $ 9.75 23.8%
Banner Aerospace
2/99 Stock Inland Steel 86.4% $ 52,200 $ 10.80 (44.4%)
Ryerson Tull
2/99 Cash Orion N.Z. 69.0% $ 81,400 $ 2.96 61.4%
Qest N.Z.
2/99 Cash Affiliated Comp Svcs 51.0% $131,900 $ 19.00 12.2%
BRC Holdings
2/99 Stock Anglo American 52.3% $580,000 $ 17.80 45.9%
Anglo American Industrial
12/98 Cash Allmerica Financial/ 81.8% $212,400 $ 29.00 5.5%
Citizens Corp (Hanover Ins)
12/98 Cash Usinor SA/ 53.0% $104,075 $ 5.75 13.6%
J&L Specialty Steel
12/98 Cash Billington/Anglo American 86.6% $203,600 $ 7.94 59.4%
Samancor
12/98 Cash Disco/Ahold/ 52.0% $159,400 $ 7.00 75.0%
Disco
12/98 Stock Anglo American 57.0% $751,700 $ 56.64 17.2%
Anglo American Coal
12/98 Cash Billington/Anglo American 52.4% $268,100 $ 0.53 30.7%
QNI
11/98 Cash Dow AgroSciences/ 62.2% $379,300 $ 20.50 11.6%
Mycogen Corp
11/98 Cash Dexter Corporation/ 52.0% $419,491 $ 37.00 12.8%
Life Technologies
11/98 Stock Reno Dei Medici/ 63.0% $ 89,600 $ 4.01 (11.9%)
Sarrio
10/98 Cash Fiat/Norsk Hydro/ 55.7% $117,600 $ 7.57 37.2%
Meridian Technology
10/98 Stock Newmont Mining/ 93.8% $313,500 $ 24.28 54.8%
Newmont Gold
9/98 Cash/Stock Buhrman/ 70.0% $138,100 $ 10.50 40.0%
BT Office Products
9/98 Stock Liberty Media/ 83.0% $387,617 $ 24.11 45.5%
Tele-Communications International
9/98 Cash Cable Michigan Inc./ 62.0% $ 55,636 $ 11.00 4.8%
Mercom
7/98 Cash Texas Industries/ 81.3% $ 72,800 $ 14.25 18.8%
Chaparral Steel
6/98 Cash Waste Management/ 80.0% $258,888 345.0 42.6%
Waste Mangagement Int'l
Initial Final Premium Final Premium
Date of Premium Over Over One Over One Day Percent
Clos- Acquiring Company/Acquired One Day Prior Final Bid Per Month Prior Prior Marker Increase in
ing Offer Company Market Price Share Price Price Offer
- ------ ----- -------------------------- ------------- ------------- ----------- ------------ -----------
Cash Boise Cascade/ (9.8%) $ 13.25 30.9% (9.8%) 0.0%
Boise Cascase Office Pr.
Cash Cordant Technologies/ 20.9% $ 17.00 38.1% 20.9% 0.0%
Howmet Intl.
Cash Citigroup/ 11.5% $ 45.00 0.8% 11.5% 0.0%
Student Loan Corp.
11/99 Cash Warburg, Pincus Ventures/ 63.9% $ 28.00 46.4% 83.6% 12.0%
Knoll (Warburg, Pincus)
8/99 Cash Vivendi/ (11.1%) $ 2.90 101.7% 28.9% 45.0%
Aqua Alliance
7/99 Cash McDermott Intl./ 16.8% $ 35.62 19.2% 16.8% 0.0%
J Ray McDermott SA
7/99 Cash Viacom/ 0.0% $ 9.75 54.5% 8.3% 8.3%
Spelling Entertainment
5/99 Cash Global TeleSystems 6.0% $210.82 0.9% 6.0% 0.0%
Omnicom
4/99 Stock Fairchild 11.4% $ 11.00 39.7% 25.7% 12.8%
Banner Aerospace
2/99 Stock Inland Steel (13.6%) $ 9.76 (49.8%) (21.9%) (9.6%)
Ryerson Tull
2/99 Cash Orion N.Z. 24.4% $ 3.13 70.9% 31.7% 5.9%
Qest N.Z.
2/99 Cash Affiliated Comp Svcs 17.1% $ 19.00 12.2% 17.1% 0.0%
BRC Holdings
2/99 Stock Anglo American 16.1% $ 15.34 25.7% 0.0% (13.9%)
Anglo American Industrial
12/98 Cash Allmerica Financial/ 5.2% $ 33.25 20.9% 20.6% 14.7%
Citizens Corp (Hanover Ins)
12/98 Cash Usinor SA/ 90.5% $ 6.38 25.9% 111.2% 10.9%
J&L Specialty Steel
12/98 Cash Billington/Anglo American 18.0% NA NA NA NA
Samancor
12/98 Cash Disco/Ahold/ 34.1% $ 7.00 75.0% 34.1% 0.0%
Disco
12/98 Stock Anglo American 6.3% $ 48.80 1.0% (8.4%) (13.9%)
Anglo American Coal
12/98 Cash Billington/Anglo American 32.9% $ 0.66 63.8% 66.5% 25.3%
QNI
11/98 Cash Dow AgroSciences/ 3.8% $ 28.00 52.4% 41.8% 36.6%
Mycogen Corp
11/98 Cash Dexter Corporation/ 19.4% $ 39.25 19.6% 26.6% 6.1%
Life Technologies
11/98 Stock Reno Dei Medici/ (6.4%) $ 4.56 0.4% 6.6% 13.9%
Sarrio
10/98 Cash Fiat/Norsk Hydro/ 40.4% $ 7.11 28.9% 31.9% (6.0%)
Meridian Technology
10/98 Stock Newmont Mining/ (9.2%) $ 30.05 91.6% 12.3% 23.8%
Newmont Gold
9/98 Cash/Stock Buhrman/ 1.2% $ 13.75 83.3% 32.5% 31.0%
BT Office Products
9/98 Stock Liberty Media/ 10.2% $ 22.00 32.8% 0.6% (8.7%)
Tele-Communications International
9/98 Cash Cable Michigan Inc./ 0.0% $ 12.00 14.3% 9.1% 9.1%
Mercom
7/98 Cash Texas Industries/ 10.7% $ 15.50 29.2% 20.4% 8.8%
Chaparral Steel
6/98 Cash Waste Management/ 39.4% 345.0 42.6% 39.4% 0.0%
Waste Mangagement Int'l
-29-
PROJECT TRUST VI. Appendix D
- --------------------------------------------------------------------------------
Minority Buy-out Transactions Valuation - Cash and Stock Offers (cont'd)
($ in millions, except per share data)
Initital
Date of Stock Price Stock Price 52 Week Premium
Clos- Acquiring Company/Acquired One Month One Day High Prior to Over 52 Week
ing Offer Company Prior to Ann. Prior to Ann. Date of Ann. Ann. High
- ------- ----- -------------------------- ------------- ------------- ------------ ------------- ------------
5/98 Cash Xerox Corp / $ 16.38 $ 17.25 03/05/1998 $ 22.50 (11.1%)
XL Connect
12/97 Cash/Stock Orion Capital/ $ 28.44 $ 32.50 09/18/1997 $ 34.56 (1.6%)
Guaranty National Corporation
12/97 Cash Waste Management Inc./ $ 12.63 $ 13.00 06/20/1997 $ 17.25 (13.0%)
Wheelabrator Technologies, Inc.
11/97 Stock Enron Corp/ $ 28.25 $ 30.25 05/14/1997 $ 32.38 (1.2%)
Enron Global Power & Pipe
9/97 Cash FH Faulding & Co $ 9.25 $ 10.75 06/30/1997 $ 12.19 (1.5%)
Faulding Inc.
8/97 Cash Texas Industries $ 12.00 $ 12.88 05/22/1997 $ 14.75 (3.4%)
Chaparral
6/97 Cash Anthem/ $ 31.63 $ 35.50 06/02/1997 $ 36.25 10.3%
Accordia
5/97 Cash Monsanto/ $ 5.06 $ 5.50 01/28/1997 $ 6.88 5.5%
Calgene
3/97 Cash/Stock Tembec Inc./ 6.25 7.00 01/23/1997 NA NA
Spruce Falls
2/97 Cash Hoechst AG/ 206.92 266.22 12/10/1996 273.78 NA
Roussel-Uclaf
9/96 Cash Chemed Corp./ 34.13 36.50 06/10/1996 41.50 NA
Roto-Rooter Inc. (Chemed Corp)
1/96 Cash Berkshire Hathaway Inc./ 55.63 55.75 08/25/1995 68.63 NA
GEICO Corp. (Berkshire Hathaway)
12/95 Cash COBE Laboratories/ 14.75 15.75 07/14/1995 19.38 (7.1%)
REN-Corp-USA (COBE Labs)
12/95 Cash BIC SA/ 31.13 35.75 05/19/1995 38.88 (6.1%)
Bic Corp (BIC SA)
10/95 Cash McCaw Cellular/ 128.25 109.88 04/07/1995 140.50 (9.3%)
LIN Bdcstg (McCaw Cellular)
9/95 Cash Pacific Corp/ 24.75 24.25 11/02/1994 29.50 (5.1%)
Pacific Telecom (Pacific Corp)
8/95 Cash Societe BIC/ 31.13 35.75 05/19/1995 37.50 (2.7%)
BIC Corp
6/95 Cash Club Mediterranee SA/ 22.25 22.63 04/05/1995 26.00 1.9%
Club Med
5/95 Cash GTE Corp/ 18.25 17.75 09/08/1994 21.25 5.9%
Contel Cellular Inc.
3/95 Cash Proventus AB/ 3.52 3.70 12/15/1994 4.30 NA
Aritmos AB
3/95 Cash Dole Food Co. Inc./ 10.50 11.63 08/24/1994 15.38 (9.0%)
Castle & Cooke Homes, Inc.
1/95 Conv. Note WMX Technologies Inc./ 8.63 8.00 07/28/1994 10.88 (27.7%)
Chemical Waste Management
1/95 Cash/Stock Adia SA/ 24.00 26.50 03/23/1994 33.25 5.3%
Adia Services Inc.
12/94 Stock Ogden Corp./ 15.25 17.38 06/06/1994 24.25 (29.2%)
Ogden Services
10/94 Stock National Intergroup Inc./ 13.00 13.50 03/01/1994 13.75 7.3%
FoxMeyer
9/94 Stock EW Scripps Co./ 75.00 78.50 02/17/1994 86.00 NA
Scripps Howard Broadcasting
6/94 Cash Colonia Konzern AG/ $1,133.16 $1,309.00 02/28/1994 $1,335.00 28.3%
Norsdtern Allgemeine
4/94 Stock Triarc Cos/ 15.50 15.50 04/26/1993 16.50 NA
Southeastern Public Services Co.
4/94 Cash Medco Containment Services/ 29.75 25.75 10/13/1993 36.50 (25.3%)
Medical Marketing Group
Aggregate Initial Premium
Date of Inside Ownership Consideration For Over One Month
Clos- Acquiring Company/Acquired Before the Amount Acquired Initial Bid Per Prior Market
ing Offer Company Transaction (000's) Share Price
- ------- ----- -------------------------- ---------------- ----------------- --------------- ----------------
5/98 Cash Xerox Corp / 80.0% $ 88,000 $ 20.00 22.1%
XL Connect
12/97 Cash/Stock Orion Capital/ 80.5% $ 106,926 $ 34.00 19.6%
Guaranty National Corporation
12/97 Cash Waste Management Inc./ 67.0% $ 874,500 $ 15.00 18.8%
Wheelabrator Technologies, Inc.
11/97 Stock Enron Corp/ 50.6% $ 428,000 $ 32.00 13.3%
Enron Global Power & Pipe
9/97 Cash FH Faulding & Co 62.0% $ 77,220 $ 12.00 29.7%
Faulding Inc.
8/97 Cash Texas Industries 84.6% $ 72,816 $ 14.25 18.8%
Chaparral
6/97 Cash Anthem/ 66.8% $ 193,155 $ 40.00 26.5%
Accordia
5/97 Cash Monsanto/ 54.5% $ 242,600 $ 7.25 43.2%
Calgene
3/97 Cash/Stock Tembec Inc./ 51.0% 175,000 10.00 60.0%
Spruce Falls
2/97 Cash Hoechst AG/ 56.5% 3,500,000 NA NA
Roussel-Uclaf
9/96 Cash Chemed Corp./ 58.1% 88,250 NA NA
Roto-Rooter Inc. (Chemed Corp)
1/96 Cash Berkshire Hathaway Inc./ 52.4% 2,347,000 NA NA
GEICO Corp. (Berkshire Hathaway)
12/95 Cash COBE Laboratories/ 53.0% 177,700 18.00 22.0%
REN-Corp-USA (COBE Labs)
12/95 Cash BIC SA/ 78.0% 212,600 36.50 17.3%
Bic Corp (BIC SA)
10/95 Cash McCaw Cellular/ 52.0% 3,323,400 127.50 (0.6%)
LIN Bdcstg (McCaw Cellular)
9/95 Cash Pacific Corp/ 86.6% 159,000 28.00 13.1%
Pacific Telecom (Pacific Corp)
8/95 Cash Societe BIC/ 78.0% 219,000 36.50 17.3%
BIC Corp
6/95 Cash Club Mediterranee SA/ 70.8% 135,600 26.50 19.1%
Club Med
5/95 Cash GTE Corp/ 90.0% 254,300 22.50 23.3%
Contel Cellular Inc.
3/95 Cash Proventus AB/ 78.2% 141,300 NA NA
Aritmos AB
3/95 Cash Dole Food Co. Inc./ 82.8% 81,500 14.00 33.3%
Castle & Cooke Homes, Inc.
1/95 Conv. Note WMX Technologies Inc./ 78.5% 397,400 7.86 (8.9%)
Chemical Waste Management
1/95 Cash/Stock Adia SA/ 81.0% 86,639 35.02 45.9%
Adia Services Inc.
12/94 Stock Ogden Corp./ 83.2% 119,000 17.16 12.5%
Ogden Services
10/94 Stock National Intergroup Inc./ 80.5% 84,028 14.75 13.5%
FoxMeyer
9/94 Stock EW Scripps Co./ 86.0% 125,386 3 shares 15.0%
Scripps Howard Broadcasting
6/94 Cash Colonia Konzern AG/ 57.9% $ 520,969 $1,713.00 51.2%
Norsdtern Allgemeine
4/94 Stock Triarc Cos/ 71.0% 86,140 .55 shares 9.2%
Southeastern Public Services Co. and $6 note
4/94 Cash Medco Containment Services/ 54.2% 122,510 27.25 (8.4%)
Medical Marketing Group
Initial Final Premium Final Premium
Date of Premium Over Over One Over One Day Percent
Clos- Acquiring Company/Acquired One Day Prior Final Bid Per Month Prior Prior Marker Increase in
ing Offer Company Market Price Share Price Price Offer
- ------ ----- -------------------------- ------------- ------------- ----------- ------------ -----------
5/98 Cash Xerox Corp / (11.1%) $ 20.00 22.1% 15.9% 0.0%
XL Connect
12/97 Cash/Stock Orion Capital/ 4.6% $ 36.00 26.6% 10.8% 5.9%
Guaranty National Corporation
12/97 Cash Waste Management Inc./ 15.4% $ 16.50 30.7% 26.9% 10.0%
Wheelabrator Technologies, Inc.
11/97 Stock Enron Corp/ 5.8% $ 33.83 19.8% 11.8% 5.7%
Enron Global Power & Pipe
9/97 Cash FH Faulding & Co 11.6% $ 13.50 45.9% 25.6% 12.5%
Faulding Inc.
8/97 Cash Texas Industries 10.7% $ 15.50 29.2% 20.4% 8.8%
Chaparral
6/97 Cash Anthem/ 12.7% $ 40.00 26.5% 12.7% 0.0%
Accordia
5/97 Cash Monsanto/ 31.8% $ 8.00 58.0% 45.5% 10.3%
Calgene
3/97 Cash/Stock Tembec Inc./ 42.9% 10.00 60.0% 42.9% 0.0%
Spruce Falls
2/97 Cash Hoechst AG/ NA 294.52 42.3% 10.6% NA
Roussel-Uclaf
9/96 Cash Chemed Corp./ NA 41.00 20.1% 12.3% NA
Roto-Rooter Inc. (Chemed Corp)
1/96 Cash Berkshire Hathaway Inc./ NA 70.00 25.8% 25.6% NA
GEICO Corp. (Berkshire Hathaway)
12/95 Cash COBE Laboratories/ 14.3% 20.00 35.6% 27.0% 11.1%
REN-Corp-USA (COBE Labs)
12/95 Cash BIC SA/ 2.1% 40.50 30.1% 13.3% 11.0%
Bic Corp (BIC SA)
10/95 Cash McCaw Cellular/ 16.0% 129.91 1.3% 18.2% 1.9%
LIN Bdcstg (McCaw Cellular)
9/95 Cash Pacific Corp/ 15.5% 30.00 21.2% 23.7% 7.1%
Pacific Telecom (Pacific Corp)
8/95 Cash Societe BIC/ 2.1% 40.50 30.1% 13.3% 11.0%
BIC Corp
6/95 Cash Club Mediterranee SA/ 17.1% 32.00 43.8% 41.4% 20.8%
Club Med
5/95 Cash GTE Corp/ 26.8% 25.50 39.7% 43.7% 13.3%
Contel Cellular Inc.
3/95 Cash Proventus AB/ NA 4.38 24.4% 18.1% NA
Aritmos AB
3/95 Cash Dole Food Co. Inc./ 20.4% 15.75 50.0% 35.5% 12.5%
Castle & Cooke Homes, Inc.
1/95 Conv. Note WMX Technologies Inc./ (1.8%) 8.86 2.7% 10.7% 12.7%
Chemical Waste Management
1/95 Cash/Stock Adia SA/ 32.2% NA NA NA NA
Adia Services Inc.
12/94 Stock Ogden Corp./ (1.2%) 18.48 21.2% 6.4% 7.7%
Ogden Services
10/94 Stock National Intergroup Inc./ 9.3% .90 shares NA 13.0% (3.4%)
FoxMeyer
9/94 Stock EW Scripps Co./ 9.9% 3.45 shares 32.3% 26.4% 15.0%
Scripps Howard Broadcasting
6/94 Cash Colonia Konzern AG/ 30.9% $1,713.00 51.2% 30.9% 0.0%
Norsdtern Allgemeine
4/94 Stock Triarc Cos/ 9.2% .80 shares 2.6% 2.6% (6.1%)
Southeastern Public Services Co.
4/94 Cash Medco Containment Services/ 5.8% 27.75 (6.7%) 7.8% 1.8%
Medical Marketing Group
-30-
PROJECT TRUST VI. Appendix D
- --------------------------------------------------------------------------------
Minority Buy-out Transactions Valuation - Cash and Stock Offers (cont'd)
($ in millions, except per share data)
Initital
Date of Stock Price Stock Price 52 Week Premium
Clos- Acquiring Company/Acquired One Month One Day High Prior to Over 52 Week
ing Offer Company Prior to Ann. Prior to Ann. Date of Ann. Ann. High
- ------- ----- -------------------------- ------------- ------------- ------------ ------------- ------------
2/94 Cash Holderbank Financiere Glaros/ 7.25 6.75 01/07/1993 7.75 (1.3%)
Holnam Inc.
12/93 Cash Valley Fashions Corp./ 48.63 48.88 09/20/1993 51.13 (10.0%)
West Point-Perpperell Inc.
10/93 Cash Torchmark/ 27.38 26.88 02/22/1993 30.25 0.8%
United Investors Management
5/93 Cash/Stock Rust International Inc./ NA 7.88 11/13/1992 23.88 (25.1%)
Brand Cos Inc.
7/92 Cash W.R. Grace & Company 11.88 15.25 03/02/1992 19.00 (13.2%)
Grace Energy Company
5/92 Stock Unocal Corp./ 9.75 9.88 02/24/1992 12.00 NA
Unocal Exploration Corp.
1/92 Stock Arkla Inc./ NA 14.25 09/18/1991 20.88 NA
Arkla Exploration Co.
12/91 Cash Siemens AG/ 131.77 120.63 10/21/1991 209.36 (29.5%)
Siemens Nixdorf Information Systems
- ------------------------------------------------------------------------------------------------------------------------------------
Average
Median
- ------------------------------------------------------------------------------------------------------------------------------------
Aggregate Initial Premium
Date of Inside Ownership Consideration For Over One Month
Clos- Acquiring Company/Acquired Before the Amount Acquired Initial Bid Per Prior Market
ing Offer Company Transaction (000's) Share Price
- ------- ----- -------------------------- ---------------- ----------------- --------------- ----------------
2/94 Cash Holderbank Financiere Glaros/ 95.0% 51,700 7.65 5.5%
Holnam Inc.
12/93 Cash Valley Fashions Corp./ 95.0% 66,300 46.00 (5.4%)
West Point-Perpperell Inc.
10/93 Cash Torchmark/ 83.0% 216,591 30.50 11.4%
United Investors Management
5/93 Cash/Stock Rust International Inc./ 56.0% 185,000 17.88 NA
Brand Cos Inc.
7/92 Cash W.R. Grace & Company 83.4% 77,501 16.50 38.9%
Grace Energy Company
5/92 Stock Unocal Corp./ 95.3% 120,418 0.50 shares 7.7%
Unocal Exploration Corp.
1/92 Stock Arkla Inc./ 82.0% 92,640 0.90 shares NA
Arkla Exploration Co.
12/91 Cash Siemens AG/ 78.0% 1,302,423 147.52 12.0%
Siemens Nixdorf Information Systems
- ------------------------------------------------------------------------------------------------------------------------------------
Average 22.6%
Median 19.0%
- ------------------------------------------------------------------------------------------------------------------------------------
Initial Final Premium Final Premium
Date of Premium Over Over One Over One Day Percent
Clos- Acquiring Company/Acquired One Day Prior Final Bid Per Month Prior Prior Marker Increase in
ing Offer Company Market Price Share Price Price Offer
- ------ ----- -------------------------- ------------- ------------- ----------- ------------ -----------
2/94 Cash Holderbank Financiere Glaros/ 13.3% NA NA NA NA
Holnam Inc.
12/93 Cash Valley Fashions Corp./ (5.9%) NA NA NA NA
West Point-Perpperell Inc.
10/93 Cash Torchmark/ 13.5% 31.25 14.2% 16.3% 2.5%
United Investors Management
5/93 Cash/Stock Rust International Inc./ 0.0% 18.75 NA 4.9% 4.9%
Brand Cos Inc.
7/92 Cash W.R. Grace & Company 8.2% 19.00 60.0% 24.6% 15.2%
Grace Energy Company
5/92 Stock Unocal Corp./ 6.3% 0.54 shares 16.3% 14.8% 8.0%
Unocal Exploration Corp.
1/92 Stock Arkla Inc./ NA 0.95 shares NA 35.6% 5.6%
Arkla Exploration Co.
12/91 Cash Siemens AG/ 22.3% 147.52 12.0% 22.3% (0.0%)
Siemens Nixdorf Information Systems
- ------------------------------------------------------------------------------------------------------------------------------------
Average 13.8% 31.6% 22.2% 7.2%
Median 11.4% 29.2% 19.3% 6.6%
- ------------------------------------------------------------------------------------------------------------------------------------
-31-
PROJECT TRUST VI. Appendix D
- --------------------------------------------------------------------------------
Minority Buy-out Transactions Valuation - Stock Offers Only
($ in millions, except per share data)
Stock Price Initital
Date of Stock Price One Day 52 Week Premium
Clos- Acquiring Company/Acquired One Month Prior to High Prior to Over 52 Week
ing Company Prior to Ann. Ann. Date of Ann. Ann. High
- ------- -------------------------- ------------- ----------- ------------ ------------- ------------
4/99 Fairchild $ 7.88 $ 8.75 12/03/1998 $13.00 (25.0%)
Banner Aerospace
2/99 Inland Steel $19.44 $12.50 09/23/1998 $22.44 (51.9%)
Ryerson Tull
2/99 Anglo American $12.20 $15.33 10/15/1998 $38.18 (53.4%)
Anglo American Industrial
12/98 Anglo American $48.33 $53.30 10/15/1998 $62.93 (10.0%)
Anglo American Coal
11/98 Reno Dei Medici/ $ 4.55 $ 4.28 02/27/1998 $ 5.02 (20.1%)
Sarrio
10/98 Newmont Mining/ $15.69 $26.75 09/29/1998 $47.00 (48.3%)
Newmont Gold
9/98 Liberty Media/ $16.56 $21.88 07/13/1998 $22.00 9.6%
International
11/97 Enron Corp/ $28.25 $30.25 05/14/1997 $32.38 (1.2%)
Enron Global Power & Pipe
12/94 Ogden Corp./ $15.25 $17.38 06/06/1994 $24.25 (29.2%)
Ogden Services
10/94 National Intergroup Inc./ $13.00 $13.50 03/01/1994 $13.75 7.3%
FoxMeyer
9/94 EW Scripps Co./ $75.00 $78.50 02/17/1994 $86.00 NA
Scripps Howard Broadcasting
4/94 Triarc Cos/ $15.50 $15.50 04/26/1993 $16.50 NA
Southeastern Public Services Co.
5/92 Unocal Corp./ $ 9.75 $ 9.88 02/24/1992 $12.00 NA
Unocal Exploration Corp.
1/92 Arkla Inc./ NA $14.25 09/18/1991 $20.88 NA
Arkla Exploration Co.
- --------------------------------------------------------------------------------------------------------------------
Average
Median
- --------------------------------------------------------------------------------------------------------------------
Aggregate Initial Premium Initial
Date of Inside Ownership Consideration For Over One Month Premium Over
Clos- Acquiring Company/Acquired Before the Amount Acquired Initial Bid Prior Market One Day Prior
ing Company Transaction (000's) Per Share Price Market Price
- ------- -------------------------- ---------------- ----------------- ----------- --------------- -------------
4/99 Fairchild 85.0% $ 82,400 $ 9.75 23.8% 11.4%
Banner Aerospace
2/99 Inland Steel 86.4% $ 52,200 $ 10.80 (44.4%) (13.6%)
Ryerson Tull
2/99 Anglo American 52.3% $580,000 $ 17.80 45.9% 16.1%
Anglo American Industrial
12/98 Anglo American 57.0% $751,700 $ 56.64 17.2% 6.3%
Anglo American Coal
11/98 Reno Dei Medici/ 63.0% $ 89,600 $ 4.01 (11.9%) (6.4%)
Sarrio
10/98 Newmont Mining/ 93.8% $313,500 $ 24.28 54.8% (9.2%)
Newmont Gold
9/98 Liberty Media/ 83.0% $387,617 $ 24.11 45.5% 10.2%
International
11/97 Enron Corp/ 50.6% $428,000 $ 32.00 13.3% 5.8%
Enron Global Power & Pipe
12/94 Ogden Corp./ 83.2% $119,000 17.16 12.5% (1.2%)
Ogden Services
10/94 National Intergroup Inc./ 80.5% $ 84,028 14.75 13.5% 9.3%
FoxMeyer
9/94 EW Scripps Co./ 86.0% $125,386 3 shares 15.0% 9.9%
Scripps Howard Broadcasting
4/94 Triarc Cos/ 71.0% $ 86,140 .55 shares 9.2% 9.2%
Southeastern Public Services Co. and $6 note
5/92 Unocal Corp./ 95.3% $120,418 0.50 shares 7.7% 6.3%
Unocal Exploration Corp.
1/92 Arkla Inc./ 82.0% $ 92,640 0.90 shares NA NA
Arkla Exploration Co.
- ------------------------------------------------------------------------------------------------------------------------------
Average 15.5% 4.2%
Median 13.5% 6.3%
- ------------------------------------------------------------------------------------------------------------------------------
Final Premium Final Premium
Date of Over One Over One Day Percent
Clos- Acquiring Company/Acquired Final Bid Per Month Prior Prior Marker Increase in
ing Company Share Price Price Offer
- ------- -------------------------- ------------- ------------- ------------- -----------
4/99 Fairchild $ 11.00 39.7% 25.7% 12.8%
Banner Aerospace
2/99 Inland Steel $ 9.76 (49.8%) (21.9%) (9.6%)
Ryerson Tull
2/99 Anglo American $ 15.34 25.7% 0.0% (13.9%)
Anglo American Industrial
12/98 Anglo American $ 48.80 1.0% (8.4%) (13.9%)
Anglo American Coal
11/98 Reno Dei Medici/ $ 4.56 0.4% 6.6% 13.9%
Sarrio
10/98 Newmont Mining/ $ 30.05 91.6% 12.3% 23.8%
Newmont Gold
9/98 Liberty Media/ $ 22.00 32.8% 0.6% (8.7%)
International
11/97 Enron Corp/ $ 33.83 19.8% 11.8% 5.7%
Enron Global Power & Pipe
12/94 Ogden Corp./ 18.48 21.2% 6.4% 7.7%
Ogden Services
10/94 National Intergroup Inc./ .90 shares NA 13.0% (3.4%)
FoxMeyer
9/94 EW Scripps Co./ 3.45 shares 32.3% 26.4% 15.0%
Scripps Howard Broadcasting
4/94 Triarc Cos/ .80 shares 2.6% 2.6% (6.1%)
Southeastern Public Services Co.
5/92 Unocal Corp./ 0.54 shares 16.3% 14.8% 8.0%
Unocal Exploration Corp.
1/92 Arkla Inc./ 0.95 shares NA 35.6% 5.6%
Arkla Exploration Co.
- -------------------------------------------------------------------------------------------------
Average 19.4% 9.0% 2.6%
Median 20.5% 9.2% 5.7%
- -------------------------------------------------------------------------------------------------
-32-
PROJECT TRUST VI. Appendix D
- --------------------------------------------------------------------------------
Minority Buy-out Transactions Valuation - Cash Offers Only
($ in millions, except per share data)
Stock Price Initital Inside
Date of Stock Price One Day 52 Week Premium Ownership
Clos- Acquiring Company/Acquired One Month Prior to High Prior Over 52 Before the
ing Company Prior to Ann. Ann. Date of Ann. to Ann. Week High Transaction
- ------- -------------------------- ------------- ----------- ------------ ---------- --------- -----------
Boise Cascade/ $ 10.13 $ 14.69 12/02/1999 $ 15.38 (13.8%) 81.2%
Boise Cascase Office Pr.
Cordant Technologies/ $ 12.31 $ 14.06 11/12/1999 $ 20.31 (16.3%) 84.6%
Howmet Intl.
Citigroup/ $ 44.63 $ 40.38 10/21/1999 $ 49.06 (8.3%) 80.0%
Student Loan Corp.
11/99 Warburg, Pincus Ventures/ $ 19.13 $ 15.25 03/24/1999 $ 40.46 (38.2%) 58.2%
Knoll (Warburg, Pincus)
8/99 Vivendi/ $ 1.44 $ 2.25 04/01/1999 $ 3.31 (39.6%) 77.8%
Aqua Alliance
7/99 McDermott Intl./ $ 29.88 $ 30.50 05/07/1999 $ 47.00 (24.2%) 63.0%
J Ray McDermott SA
7/99 Viacom/ $ 6.31 $ 9.00 03/21/1999 $ 9.50 (5.3%) 80.9%
Spelling Entertainment
5/99 Global TeleSystems/ $208.87 $198.84 04/14/1999 $208.87 0.9% 52.5%
Omnicom
2/99 Orion N.Z./ $ 1.83 $ 2.38 10/29/1998 $ 4.06 (27.1%) 69.0%
Qest N.Z
2/99 Affiliated Comp Svcs/ $ 16.94 $ 16.22 10/16/1998 $ 21.25 (10.6%) 51.0%
BRC Holdings
12/98 Allmerica Financial/ $ 27.50 $ 27.56 10/27/1998 $ 34.63 (16.2%) 81.8%
Citizens Corp (Hanover Ins)
12/98 Usinor SA/ $ 5.06 $ 3.02 09/23/1998 $ 14.19 (59.5%) 53.0%
J&L Specialty Steel
12/98 Billington/Anglo American $ 4.98 $ 6.72 10/14/1998 $ 7.87 0.9% 86.6%
Samancor
12/98 Disco/Ahold/ $ 4.00 $ 5.22 11/13/1998 $ 15.20 (53.9%) 52.0%
Disco
12/98 Billington/Anglo American $ 0.41 $ 0.40 09/07/1998 $ 1.25 (57.7%) 52.4%
QNI
11/98 Dow AgroSciences/ $ 18.38 $ 19.75 04/30/1998 $ 25.00 (18.0%) 62.2%
Mycogen Corp
11/98 Dexter Corporation/ $ 32.81 $ 31.00 07/07/1998 $ 38.50 (3.9%) 52.0%
Life Technologies
10/98 Fiat/Norsk Hydro/ $ 5.52 $ 5.39 05/29/1998 $ 6.17 22.6% 55.7%
Meridian Technology
9/98 Cable Michigan Inc./ $ 10.50 $ 11.00 04/30/1998 $ 11.00 0.0% 62.0%
Mercom
7/98 Texas Industries/ $ 12.00 $ 12.88 05/22/1997 $ 14.88 (4.2%) 81.3%
Chaparral Steel
6/98 Waste Management/ 242.0 247.5 06/29/1998 279.0 23.7% 80.0%
Waste Mangagement Int'l
5/98 Xerox Corp / $ 16.38 $ 17.25 03/05/1998 $ 22.50 (11.1%) 80.0%
XL Connect
12/97 Orion Capital/ $ 28.19 $ 32.50 09/18/1997 $ 34.56 (11.1%) 77.3%
Guaranty National Corp
12/97 Waste Management Inc./ $ 12.63 $ 13.00 06/20/1997 $ 17.25 (13.0%) 67.0%
Wheelabrator Technologies, Inc.
9/97 FH Faulding & Co $ 9.25 $ 10.75 06/30/1997 $ 12.19 (1.5%) 62.0%
Faulding Inc.
8/97 Texas Industries $ 12.00 $ 12.88 05/22/1997 $ 14.75 (3.4%) 84.6%
Chaparral
Initial
Initial Premium Final
Aggregate Premium Over One Premium
Date of Consideration Over One Day Prior Over One
Clos- Acquiring Company/Acquired For Amount Initial Bid Per Month Prior Market Final Bid Month Prior
ing Company Acquired (000's) Share Market Price Price Per Share Price
- ------- -------------------------- ---------------- --------------- ------------ --------- --------- -----------
Boise Cascade/ $ 163,900 $ 13.25 30.9% (9.8%) $ 13.25 30.9%
Boise Cascase Office Pr.
Cordant Technologies/ $ 261,400 $ 17.00 38.1% 20.9% $ 17.00 38.1%
Howmet Intl.
Citigroup/ $ 180,000 $ 45.00 0.8% 11.5% $ 45.00 0.8%
Student Loan Corp.
11/99 Warburg, Pincus Ventures/ $ 490,800 $ 25.00 30.7% 63.9% $ 28.00 46.4%
Knoll (Warburg, Pincus)
8/99 Vivendi/ $ 117,100 $ 2.00 39.1% (11.1%) $ 2.90 101.7%
Aqua Alliance
7/99 McDermott Intl./ $ 514,500 $ 35.62 19.2% 16.8% $ 35.62 19.2%
J Ray McDermott SA
7/99 Viacom/ $ 191,600 $ 9.00 42.6% 0.0% $ 9.75 54.5%
Spelling Entertainment
5/99 Global TeleSystems/ $ 189,800 $210.82 0.9% 6.0% $210.82 0.9%
Omnicom
2/99 Orion N.Z./ $ 81,400 $ 2.96 61.4% 24.4% $ 3.13 70.9%
Qest N.Z
2/99 Affiliated Comp Svcs/ $ 131,900 $ 19.00 12.2% 17.1% $ 19.00 12.2%
BRC Holdings
12/98 Allmerica Financial/ $ 212,400 $ 29.00 5.5% 5.2% $ 33.25 20.9%
Citizens Corp (Hanover Ins)
12/98 Usinor SA/ $ 104,075 $ 5.75 13.6% 90.5% $ 6.38 25.9%
J&L Specialty Steel
12/98 Billington/Anglo American $ 203,600 $ 7.94 59.4% 18.0% NA NA
Samancor
12/98 Disco/Ahold/ $ 159,400 $ 7.00 75.0% 34.1% $ 7.00 75.0%
Disco
12/98 Billington/Anglo American $ 268,100 $ 0.53 30.7% 32.9% $ 6.38 1472.2%
QNI
11/98 Dow AgroSciences/ $ 379,300 $ 20.50 11.6% 3.8% $ 28.00 52.4%
Mycogen Corp
11/98 Dexter Corporation/ $ 419,491 $ 37.00 12.8% 19.4% $ 39.25 19.6%
Life Technologies
10/98 Fiat/Norsk Hydro/ $ 117,600 $ 7.57 37.2% 40.4% $ 7.11 28.9%
Meridian Technology
9/98 Cable Michigan Inc./ $ 55,636 $ 11.00 4.8% 0.0% $ 12.00 14.3%
Mercom
7/98 Texas Industries/ $ 72,800 $ 14.25 18.8% 10.7% $ 15.50 29.2%
Chaparral Steel
6/98 Waste Management/ $ 258,888 345.0 42.6% 39.4% 345.0 42.6%
Waste Mangagement Int'l
5/98 Xerox Corp / $ 88,000 $ 20.00 22.1% (11.1%) $ 20.00 22.1%
XL Connect
12/97 Orion Capital/ $ 117,200 $ 34.00 22.1% (11.1%) $ 36.50 22.1%
Guaranty National Corp
12/97 Waste Management Inc./ $ 874,500 $ 15.00 18.8% 15.4% $ 16.50 30.7%
Wheelabrator Technologies, Inc.
9/97 FH Faulding & Co $ 77,220 $ 12.00 29.7% 11.6% $ 13.50 45.9%
Faulding Inc.
8/97 Texas Industries $ 72,816 $ 14.25 18.8% 10.7% $ 15.50 29.2%
Chapparral
Final
Premium
Date of Over One Percent
Clos- Acquiring Company/Acquired Day Prior Increase in
ing Company Marker Price Offer
- ------- -------------------------- ------------ -----------
Boise Cascade/ (9.8%) 0.0%
Boise Cascase Office Pr.
Cordant Technologies/ 20.9% 0.0%
Howmet Intl.
Citigroup/ 11.5% 0.0%
Student Loan Corp.
11/99 Warburg, Pincus Ventures/ 83.6% 12.0%
Knoll (Warburg, Pincus)
8/99 Vivendi/ 28.9% 45.0%
Aqua Alliance
7/99 McDermott Intl./ 16.8% 0.0%
J Ray McDermott SA
7/99 Viacom/ 8.3% 8.3%
Spelling Entertainment
5/99 Global TeleSystems/ 6.0% 0.0%
Omnicom
2/99 Orion N.Z./ 31.7% 5.9%
Qest N.Z
2/99 Affiliated Comp Svcs/ 17.1% 0.0%
BRC Holdings
12/98 Allmerica Financial/ 20.6% 14.7%
Citizens Corp (Hanover Ins)
12/98 Usinor SA/ 111.2% 10.9%
J&L Specialty Steel
12/98 Billington/Anglo American NA NA
Samancor
12/98 Disco/Ahold/ 34.1% 0.0%
Disco
12/98 Billington/Anglo American 1498.5% 1102.8%
QNI
11/98 Dow AgroSciences/ 41.8% 36.6%
Mycogen Corp
11/98 Dexter Corporation/ 26.6% 6.1%
Life Technologies
10/98 Fiat/Norsk Hydro/ 31.9% (6.0%)
Meridian Technology
9/98 Cable Michigan Inc./ 9.1% 9.1%
Mercom
7/98 Texas Industries/ 20.4% 8.8%
Chaparral Steel
6/98 Waste Management/ 39.4% 0.0%
Waste Mangagement Int'l
5/98 Xerox Corp / 15.9% 0.0%
XL Connect
12/97 Orion Capital/ 12.3% 0.0%
Guaranty National Corp
12/97 Waste Management Inc./ 26.9% 10.0%
Wheelabrator Technologies, Inc.
9/97 FH Faulding & Co 25.6% 12.5%
Faulding Inc.
8/97 Texas Industries 20.4% 8.8%
Chapparral
-33-
PROJECT TRUST VI. Appendix D
- --------------------------------------------------------------------------------
Minority Buy-out Transactions Valuation - Cash Offers Only (cont'd)
($ in millions, except per share data)
Stock Price Initital Inside
Date of Stock Price One Day 52 Week Premium Ownership
Clos- Acquiring Company/Acquired One Month Prior to High Prior Over 52 Before the
ing Company Prior to Ann. Ann. Date of Ann. to Ann. Week High Transaction
- ------- -------------------------- ------------- ----------- ------------ ---------- --------- -----------
6/97 Anthem/ $ 31.63 $ 35.50 06/02/1997 $ 36.25 10.3% 66.8%
Accordia
5/97 Monsanto/ $ 5.06 $ 5.50 01/28/1997 $ 6.88 5.5% 54.5%
Calgene
2/97 Hoechst AG/ $ 206.92 $ 266.22 12/10/1996 $ 273.78 NA 56.5%
Roussel-Uclaf
9/96 Chemed Corp./ $ 34.13 $ 36.50 06/10/1996 $ 41.50 NA 58.1%
Corp)
1/96 Berkshire Hathaway Inc./ $ 55.63 $ 55.75 08/25/1995 $ 68.63 NA 52.4%
Hathaway)
12/95 COBE Laboratories/ $ 14.75 $ 15.75 07/14/1995 $ 19.38 (7.1%) 53.0%
REN-Corp-USA (COBE Labs)
12/95 BIC SA/ $ 31.13 $ 35.75 05/19/1995 $ 38.88 (6.1%) 78.0%
Bic Corp (BIC SA)
10/95 McCaw Cellular/ $ 128.25 $ 109.88 04/07/1995 $ 140.50 (9.3%) 52.0%
LIN Bdcstg (McCaw Cellular)
9/95 Pacific Corp/ $ 24.75 $ 24.25 11/02/1994 $ 29.50 (5.1%) 86.6%
Pacific Telecom (Pacific Corp)
8/95 Societe BIC/ $ 31.13 $ 35.75 05/19/1995 $ 37.50 (2.7%) 78.0%
BIC Corp
6/95 Club Mediterranee SA/ $ 22.25 $ 22.63 04/05/1995 $ 26.00 1.9% 70.8%
Club Med
5/95 GTE Corp/ $ 18.25 $ 17.75 09/08/1994 $ 21.25 5.9% 90.0%
Contel Cellular Inc.
3/95 Proventus AB/ $ 3.52 $ 3.70 12/15/1994 $ 4.30 NA 78.2%
Aritmos AB
3/95 Dole Food Co. Inc./ $ 10.50 $ 11.63 08/24/1994 $ 15.38 (9.0%) 82.8%
Castle & Cooke Homes, Inc.
6/94 Colonia Konzern AG/ $1,133.16 $1,309.00 02/28/1994 $1,335.00 28.3% 57.9%
Norsdtern Allgemeine
4/94 Medco Containment Services/ $ 29.75 $ 25.75 10/13/1993 $ 36.50 (25.3%) 54.2%
Medical Marketing Group
2/94 Holderbank Financiere Glaros/ $ 7.25 $ 6.75 01/07/1993 $ 7.75 (1.3%) 95.0%
Holnam Inc.
12/93 Valley Fashions Corp./ $ 48.63 $ 48.88 09/20/1993 $ 51.13 (10.0%) 95.0%
West Point-Perpperell Inc.
10/93 Torchmark/ $ 27.38 $ 26.88 02/22/1993 $ 30.25 0.8% 83.0%
United Investors Management
7/92 W.R. Grace & Company $ 11.88 $ 15.25 03/02/1992 $ 19.00 (13.2%) 83.4%
Grace Energy Company
12/91 Siemens AG/ $ 131.77 $ 120.63 10/21/1991 $ 209.36 (29.5%) 78.0%
Systems
- ----------------------------------------------------------------------------------------------------------------------------------
Average
Median
- ----------------------------------------------------------------------------------------------------------------------------------
Initial
Initial Premium
Aggregate Premium Over One
Date of Consideration Over One Day Prior
Clos- Acquiring Company/Acquired For Amount Initial Bid Per Month Prior Market Final Bid
ing Company Acquired (000's) Share Market Price Price Per Share
- ------- -------------------------- ---------------- --------------- ------------ --------- ----------
6/97 Anthem/ $ 193,155 $ 40.00 26.5% 12.7% $ 40.00
Accordia
5/97 Monsanto/ $ 242,600 $ 7.25 43.2% 31.8% $ 8.00
Calgene
2/97 Hoechst AG/ $3,500,000 NA NA NA $ 294.52
Roussel-Uclaf
9/96 Chemed Corp./ $ 88,250 NA NA NA $ 41.00
Corp)
1/96 Berkshire Hathaway Inc./ $2,347,000 NA NA NA $ 70.00
Hathaway)
12/95 COBE Laboratories/ $ 177,700 $ 18.00 22.0% 14.3% $ 20.00
REN-Corp-USA (COBE Labs)
12/95 BIC SA/ $ 212,600 $ 36.50 17.3% 2.1% $ 40.50
Bic Corp (BIC SA)
10/95 McCaw Cellular/ $3,323,400 $ 127.50 (0.6%) 16.0% $ 129.91
LIN Bdcstg (McCaw Cellular)
9/95 Pacific Corp/ $ 159,000 $ 28.00 13.1% 15.5% $ 30.00
Pacific Telecom (Pacific Corp)
8/95 Societe BIC/ $ 219,000 $ 36.50 17.3% 2.1% $ 40.50
BIC Corp
6/95 Club Mediterranee SA/ $ 135,600 $ 26.50 19.1% 17.1% $ 32.00
Club Med
5/95 GTE Corp/ $ 254,300 $ 22.50 23.3% 26.8% $ 25.50
Contel Cellular Inc.
3/95 Proventus AB/ $ 141,300 NA NA NA $ 4.38
Aritmos AB
3/95 Dole Food Co. Inc./ $ 81,500 $ 14.00 33.3% 20.4% $ 15.75
Castle & Cooke Homes, Inc.
6/94 Colonia Konzern AG/ $ 520,969 $1,713.00 51.2% 30.9% $1,713.00
Norsdtern Allgemeine
4/94 Medco Containment Services/ $ 122,510 $ 27.25 (8.4%) 5.8% $ 27.75
Medical Marketing Group
2/94 Holderbank Financiere Glaros/ $ 51,700 $ 7.65 5.5% 13.3% NA
Holnam Inc.
12/93 Valley Fashions Corp./ $ 66,300 $ 46.00 (5.4%) (5.9%) NA
West Point-Perpperell Inc.
10/93 Torchmark/ $ 216,591 $ 30.50 11.4% 13.5% $ 31.25
United Investors Management
7/92 W.R. Grace & Company $ 77,501 $ 16.50 38.9% 8.2% $ 19.00
Grace Energy Company
12/91 Siemens AG/ $1,302,423 $ 147.52 12.0% 22.3% $ 147.52
Systems
- -------------------------------------------------------------------------------------------------------------------------------
Average 23.7% 16.2%
Median 19.2% 14.3%
- -------------------------------------------------------------------------------------------------------------------------------
Final Final
Premium Premium
Date of Over One Over One Percent
Clos- Acquiring Company/Acquired Month Prior Day Prior Increase in
ing Company Price Marker Price Offer
- ------- -------------------------- ----------- ------------ -----------
6/97 Anthem/ 26.5% 12.7% 0.0%
Accordia
5/97 Monsanto/ 58.0% 45.5% 10.3%
Calgene
2/97 Hoechst AG/ 42.3% 10.6% NA
Roussel-Uclaf
9/96 Chemed Corp./ 20.1% 12.3% NA
Corp)
1/96 Berkshire Hathaway Inc./ 25.8% 25.6% NA
Hathaway)
12/95 COBE Laboratories/ 35.6% 27.0% 11.1%
REN-Corp-USA (COBE Labs)
12/95 BIC SA/ 30.1% 13.3% 11.0%
Bic Corp (BIC SA)
10/95 McCaw Cellular/ 1.3% 18.2% 1.9%
LIN Bdcstg (McCaw Cellular)
9/95 Pacific Corp/ 21.2% 23.7% 7.1%
Pacific Telecom (Pacific Corp)
8/95 Societe BIC/ 30.1% 13.3% 11.0%
BIC Corp
6/95 Club Mediterranee SA/ 43.8% 41.4% 20.8%
Club Med
5/95 GTE Corp/ 39.7% 43.7% 13.3%
Contel Cellular Inc.
3/95 Proventus AB/ 24.4% 18.1% NA
Aritmos AB
3/95 Dole Food Co. Inc./ 50.0% 35.5% 12.5%
Castle & Cooke Homes, Inc.
6/94 Colonia Konzern AG/ 51.2% 30.9% 0.0%
Norsdtern Allgemeine
4/94 Medco Containment Services/ (6.7%) 7.8% 1.8%
Medical Marketing Group
2/94 Holderbank Financiere Glaros/ NA NA NA
Holnam Inc.
12/93 Valley Fashions Corp./ NA NA NA
West Point-Perpperell Inc.
10/93 Torchmark/ 14.2% 16.3% 2.5%
United Investors Management
7/92 W.R. Grace & Company 60.0% 24.6% 15.2%
Grace Energy Company
12/91 Siemens AG/ 12.0% 22.3% (0.0%)
Systems
- ---------------------------------------------------------------------------------------
Average 65.6% 58.9% 35.1%
Median 29.6% 21.6% 7.7%
- ---------------------------------------------------------------------------------------
-34-