EXHIBIT 99.(c)(3)
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Highly Confidential
Project Mars
Discussion Materials
Goldman Sachs International
January 19, 2001
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Table of Contents
Valuation and Approach I
II
Financing
Appendix
Financing Appendix A
Valuation Appendix B
Executive Summary
o Transactions, whether Control buyouts or Minority buyouts, tend to have
initial premiums of approximately 15%
o Ultimately an Acquirer can expect to be negotiated by the Special Committee
to a higher price, typically on average of approximately 20% in the case of
Minority buyouts and approximately 25% in the case of Control buyouts
-- Special Committee exercising their fiduciary duty to get more value
for shareholders being bought out
-- 5% on average above initial premiums in Minority buyout transactions
-- 10% on average above initial premiums in Control buyout transactions
o Mars has seen substantial increase in its stock price since March. While a
portion of the improvement may be due to speculation about a potential
takeover bid, Mars' improved operating performance seems to be driving much
of its share price appreciation
o Given the price appreciation Mars shareholders have seen, we would suggest
considering a premium modestly below typical initial premiums, with the
expectations of needing to increase the premium somewhat during
negotiations with the Special Committee
Valuation Rationale
Background
o After going public at $24 per share in March, 1998, Mars' stock price rose
to an all-time high of $32.69 in July, 1998 before beginning a generally
steady decline that lasted through the first quarter of 2000
-- Three out of four quarters in FY1999 with disappointing or lackluster
results
-- Negative profit warning in December 1999
-- Decreased contract retention rates and sluggish sales growth
-- Top management changes
o Since March, 2000, Mars' stock price has steadily risen from an all-time
low of $10.13 per share to over $24 as of January 17, 2001:
-- Improved operating results
-- Four straight quarters of exceeding analyst expectations
-- Potential speculation about a possible takeover bid from Milky Way
o The top 25 US institutional shareholders, representing 22% of Mars shares
outstanding, purchased their shares at a weighted average price of
approximately $21, consistent with the weighted average price since
inception
-- 12 out of these 25 shareholders, owning almost 2/3 of these shares,
purchased their shares at prices close to or above $21
-- Transamerica, Mars' largest shareholder representing 11% of all shares
outstanding and 49% of shares owned by the top 25, purchased shares at
approximately $25
o Despite a disparity in operating growth and expectations for future
performance (with Mars modestly under-performing Morrison along most
operating and valuation measures), Mars' stock price has outperformed
Morrison's between March, 2000 and January, 2001
-- Stock price up over 80%
-- Mars' performance has been improving, even though Mars' operations
still fall below Morrison's along key metrics such as sales growth and
long term EPS growth
Valuation Rationale
-- Mars earnings growth, at 29% for the December, 2000 quarter, was below
Morrison's 35% earnings growth
-- Mars' operating margins are 2/3 of Morrison's when Morrison is judged
on a managed-volume basis
Public Market Valuation
o Today, on an EPS basis, Mars trades at a modest discount to Morrison and at
a premium to ServiceMaster
-- Mars and Morrison are trading at or near 52-week highs, though
ServiceMaster continues to trade 20% off its 52-week high
o Morrison is valued at a premium to Mars (0.6x 2000 Sales; 16.3x 2000 EBIT;
20.0x 2001 P/E) because the market expects it will report higher revenue,
EBIT and EPS growth rates
-- Projected EPS growth of up to 40% in FY2001, stabilizing to 15%-20%
long term
-- Projected managed-volume revenue growth of 13% in CY2001 and 15% in
CY2002
o ServiceMaster trades at a discount to Mars because over the last year, it
has consistently failed to meet analyst expectations, and is projecting
lower revenue growth, margins, and EPS growth relative to Mars
-- 0.9x 2000 Sales; 12.0x 2000 EBIT; 17.5 2001 P/E
-- 3.6% CY2000 EBIT Management Services margin, 12% long-term EPS growth
o European service management companies as a group trade at a premium to
Mars, because they generally project higher revenue, EBIT and EPS growth
o Given higher growth expectations for European companies relative to US
companies and a more receptive European investor base, it is unlikely that
US companies can look at European trading multiples as achievable over at
least the near term
-- Even Morrison which has growth and margins in line with European
counterparts trades at a discount to the group
Valuation Rationale
Minority Buyout Premiums
o Bidder owns more than 50% of the shares prior to the transaction
o Median premiums paid in 84 transactions are 15% - 20% to the undisturbed
price
Control Buyout Premiums
o Bidder owns 25% - 50% of the shares prior to the transaction and controls
less than half of the board seats
o Median premiums paid in 6 US transactions are somewhat higher (at the high
end of the range) than in minority buyout situations -- 14% - 26% over the
undisturbed price -- suggesting the need to pay a premium for actual rather
than effective control
Preliminary Thoughts on the Value of Mars
Current Price $24.44(a)
|
Per Share(b) $5 $10 $14 $19 $24| $29 $33 $38
|
Equity |
Consideration $300 $600 $900 $1,200 $1,500 $1,800 $2,100 $2,400
| | | | | | | |
---------------------------------|------------------------
| |
Trading $10-----------------|--$24| 1 year trading range
Range $10-----------------|-----|---------$32 Trading range
| | since inception
| |
| |
| |
Common 18.5x-19.5 CY2001 EPS | $24|--$26
Stock | |
Comparison 12.0x-14.0x CY2000 EBIT | |$24----$30
(c) | |
| |
| |
| |
Minority 15%-20% Premium | $|25-$26 30 Day Average
Buyout | |
Premium Analysis 15%-20% Premium | | $28-$29 Current Price
| |
| |
| |
Control 14%-26% Premium | $|25--$27 30 Day Average
Buyout | |
Premium Analysis 14%-26% Premium | | $28--$30 Current Price
| |
30 day
average $21.45
(a) Price as of January 17, 2001.
(b) Assumes 63.25 million basic shares outstanding as of September 1, 2000.
(c) Range based on selected contract food services companies.
Recommended Approach
A formal approach with an indication of price would restrain escalation in the
stock price
Step 1 o Call Mars CEO Bill Shaw on Friday/Saturday
-- Sending a letter to express interest in buying out
shares not owned by the Company
-- Price
-- Not interested in selling the Company
-- Not in a position to sign before 27/03/2001 unless
conditions limiting the ability to consummate
transaction before 27 March are waived
-- Will file 13-D and issue confirmation press release on
Monday
Step 2 o Follow immediately with Letter
Step 3 o Company likely to issue press release about offer and
formation of Special Committee
o Amend 13-D on Monday
-- Attach letter sent to Bill Shaw
-- Attach Milky Way confirmatory press release
Step 4 o Mars Board forms Special Committee (Metz and Altobello)
Step 5 o Special Committee evaluates and negotiates proposal
-- Hire advisors
-- Analyze proposal
-- Negotiate price, terms and conditions
-- Likely asked to sign standstill
Step 6 o Announce the deal, commence the tender offer & financings
Mars Timetable Summary
Jan February March April May June
22 29 5 12 19 26 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18
Mars Buyout
- -----------
Approach Board (26/1) XXXX
Sign Agreement XXXX
Closing XXXX
AA Timetable
(tentative)
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Binding Bid XXXX
Signing XXXX
Closing XXXX
Debt
Financing
- ---------
Committed Financing XXXX
Syndication XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Funds available XXXX
Rights Issue
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Pricing of DPS XXXX
Roadshow XXXX
Trading of DPS / Exercise of rights XXXXXXXXXXX
Centralisation / Settlement XXXXXXXXXXX
Bond Issue
- ----------
Roadshow XX
Pricing XX
Signing and Closing XX
Hedging
- -------
Pre-hedging XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Adjustments
Hedging XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
(1) Adjusted for Off B/S Debt and Operating Leases June to August
Outline of Offer Letter
o Overview
-- Offer to acquire all of the outstanding shares not currently owned by
Milky Way
-- Consideration: all cash, price
-- Premium information
o Strategic Rationale
o Conditions
-- Usual and customary closing conditions including:
-- Execution of definitive merger agreement
-- Approval of Mars shareholders
-- No Milky Way shareholder approval required
-- No financing conditions. Highly confident on financing
o Other considerations
-- Not in a position to sign before 27/03/2001 unless conditions limiting
the ability to consummate transaction before 27 March are waived
-- Interested only in acquiring publicly held shares
-- Not interested in selling Milky Way stake
Mars Transaction
Sensitivity Analysis
Assuming 50% equity financing of the transaction through a rights issue
Based on January 17 share price of Mars of: $24.44
Pre Gwill Pre Gwill Post Gwill Post Gwil Total
EPS EPS EPS EPS EBITDA Equity
Accretion Accretion Accretion Accretion Interet FFO/Net raised
2002 2003 2002 2003 2002 Debt 2002 (EURO)
---- ---- ---- ---- ---- --------- ------
Premium on Cash Offer/
the offer share ($)
--------- ---------
0% 21.45 9.0% 10.8% 7.0% 9.5% 5.22 35.8% 403
5% 22.52 8.4% 10.3% 5.9% 8.5% 5.18 35.3% 422
10% 23.60 7.7% 9.7% 4.7% 7.6% 5.14 34.8% 441
15% 24.67 7.1% 9.2% 3.6% 6.7% 5.11 34.2% 460
20% 25.74 6.5% 8.7% 2.5% 5.7% 5.07 33.7% 479
Premium on the 30 day-average share price of Mars. Assuming an Exchange Rate $/(EURO) of 0.95 and a share price of EURO 200.00 for
Milky Way
Exchange
Rate
($/EURO)
--------
0.80 9.6% 12.1% 6.1% 9.7% 4.98 31.1% 542
0.90 8.0% 10.2% 4.5% 7.7% 5.07 33.3% 482
1.00 6.6% 8.6% 3.2% 6.1% 5.16 35.4% 433
1.10 5.6% 7.5% 2.3% 5.0% 5.27 37.7% 394
Assuming a cash offer of $ 24.44 per Mars share (Jan 17) and a share price of (EURO)200.00 for Milky Way
Milky Way
Share Price
-----------
190 6.8% 8.9% 3.4% 6.5% 5.12 34.5% 456
195 7.0% 9.1% 3.7% 6.7% 5.12 34.4% 456
200 7.2% 9.3% 3.8% 6.9% 5.12 34.3% 456
205 7.4% 9.5% 4.0% 7.0% 5.11 34.3% 456
210 7.6% 9.7% 4.2% 7.2% 5.11 34.2% 456
Assuming a cash offer of $ 24.44 per Mars share (Jan 17) and an Exchange Rate
$/(EURO) of 0.95
[MS4]
Summary of Transactions Impact
Mars Only
Key Assumptions Transaction Date: June 1st 2001
Price paid per Mars share (Jan 17 price): $ 24.44
Total Mars deal consideration (include fees): $ 867 m
Exchange Rate ($/Euro): 0.9500
Milky Way Share price: Euro 200.00
Equity Raised: Euro 456 m
Ammend Mars existing debt, refinance with Euro 1bn bond
-----------------------------------------
Net Income 2002 316
before goodwill 2003 404
-----------------------------------------
EPS Accretion 2002 7.2%
before gwill 2003 9.3%
-----------------------------------------
Net Income 2002 272
2003 360
-----------------------------------------
EPS Accretion 2002 3.8%
2003 6.9%
-----------------------------------------
Cumulative Net Income
2002 272
2003 632
2004 1011
2005 1420
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FFO / Net Debt (%)
2001A 25%
2002 34%
2003 51%
2004 66%
2005 100%
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EBITDA/Net Interest
Expense (x) 2001A 5.1
2002 5.1
2003 6.4
2004 7.1
2005 7.8
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Note: EPS pre-goodwill includes amortization of fees. Amortization schedule
varies depending on the fee nature between 5 and 7 years. Assuming shares
bought back in the market to cover Mars option rolled over, with estimated
Milky Way price based on a constant P/E multiple
Treatment of Mars Stock Options
Plan
o In-the-money, vested stock options: cash out at spread value
o All other options: roll-over into Milky Way options
Rationale
o Treats holders of in-the-money vested options on the same basis as public
shareholders
o Maintains continuity of incentives for holders of unvested and
out-of-the-money options
Execution
o Avoid filing of US GAAP-reconciled financials in the interim period between
deal closing and US listing by temporarily freezing exercise of options
o To avoid employee morale issues, the goal should be to complete a US
listing as soon as possible, and in any case no later than December 2001
Cost / Impact
o $29.5m for the cash out of 3.3m vested in the money options
o Rollover of all other options into 573,311 Milky Way options, representing
about 1.6% of Milky Way 2001 average basic number of shares
o Share buy back to cover impact of further dilution of control
o Buyback of Milky Way shares over the next four years (up to 2004) to
prevent further dilution of control of Bellon SA from the exercise of
rolled over options (bought back shares considered as still
outstanding in assets)
o Price of buyback at projected Milky Way share price, estimated by
applying 2001 P/E to next four years' earnings
o Total cost of buy back of about (EURO)200m before option exercise
proceeds, (EURO)100m after exercise proceeds
o Excludes any assumption for new options on an ongoing basis
Key Issues Relating to a US Listing
o Key benefits of a US listing in the case of Milky Way
o Single-stock based compensation mechanism, allowing Milky Way to have
maximum flexibility in providing options and shares to US employees
o Provide a better acquisition currency to support the group's expansion
plans in the US
o Timing, sequence
o We would recommend proceeding with both the US listing and the
equity/debt financing separately. We would not recommend listing the
DPS's in the US as Milky Way's US investor base is very limited and
would therefore prove to be very cumbersome and unnecessary from a
demand standpoint
o Note however that a US listing is a lengthy process which needs to be
started as soon as possible; assuming the accounts are available, it
can take approximately three months from start to finish
o US listing vehicle for acquisition purposes
o We would recommend listing the holding/parent (Milky Way's ADRs):
- The sole disadvantage seems to be the potential dilution at the
Bellon level.
o The disadvantages of listing a subsidiary are numerous:
- An IPO/US listing of one of Milky Way's main divisions would
generally suffer from lack of visibility, investor interest and
liquidity and would, as a result, have an impact on valuation,
which in turn, would impact the effectiveness and scope of the
acquisition currency;
o Depending on the acquisition contemplated, financing structures will
have to be put in place on an ad-hoc basis (e.g. does it make sense to
float a subsidiary, do a reverse take-over, sell assets, issue
preferred, issue a small amount of equity, reduce rating to BBB,...)
Mars Timetable
Preemptive Case
Jan February March April May June July
22 29 5 12 19 26 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 2 9 16 23 30
- ---------------------------
BUY OUT
Offer to Mars Board X
Amend 13 D X
Send Offer Letter X
Announce Offer made X
Special Committee formed X
Merger agreement signed /
Special Committee
Approval X
Announce deal signed (1) X
Tender Offer
File tender offer X
Close tender offer X
Closing X
Back end Merger X
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AA TENTATIVE TIMETABLE
Binding Bid X
Signing X
Closing X
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DEBT FINANCING
Credit Rating
Call/Meeting with S&P X
Visit to S&P X
Documentation - Bank
Term sheet negotiations XXXXXXX
Terms sheet finalized and XX
commitment signed
Negotiate Credit Agreement XXXXXX
Credit Agreement finalised and XXXX
signed
Documentation - Bond
Mars Timetable
Preemptive Case
[CHART]
Jan February March April May June July
22 29 5 12 19 26 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 2 9 16 23 30
- -------------------------
Prepare Prospectus and
Necessary Documentation XXXXXXXXXXXX
Notify Stock Exchange XXXXXXXXXXXXXX
Marketing - Bank
Prepare Bank Book XXXXXXXXXXXXX
Mail Bank Book XXX
Develop Bank Meeting
Presentation XXXXXXX
Bank Meeting
Presentation XXX
Primary Syndication XXXXXXXX
General Syndication XXXXXXXXXXXXX
Syndication Closes
(Funds available) XX
Marketing - Bond
Prepare Sales Memo XXXXXXXXXX
Set-up Roadshow XX
Roadshow XX
Pricing XX
Signing and Closing XX
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RIGHTS ISSUE
Due Diligence
Due Diligence on Milky Way XXXXXXXXXXXXXXXXXXXXXXXXXXX
Documentation
Drafting of "note d'operation" XXXXXXXXXXXXXXXXXXXXXXXXX
File documentation with COB XX
COB Comments XX
Visa of COB XX
Marketing/Communication
Prepare Presentation Roadshow XXXXXXXXXX
Pricing of DPS XX
Publication in BALO XX
Mars Timetable
Preemptive Case Jan February March April May June July
-------------------------------------------------------------------------------------------------
22 29 5 12 19 26 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 2 9 16 23 30
-------------------------------------------------------------------------------------------------
Roadshow X
Trading of DPS/ exercise of rights X X X
Centralisation, settlement XXXXXXXX
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US GAAP financials ready X
Drafting 20-F XXXXXXXXXXXXXXXXXXXXXX
Preliminary listing eligibility review X
Confidentially file 20-F X
Submit Preliminary listing application X
Respond to SEC comments X
Submit signed lising application X
Resolve last open comments
20-F effective (end of August) X
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HEDGING
Recommendation and execution of
pre-hedging XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Adjustment of pre-hedging XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Hedging XXXXXXXXXXXXXXXXXXXXXXXX
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Mars
Shares Traded at Various Prices
[Four graphs depicting the volume of Mars shares traded at various
prices, over different time periods.
Graph 1 - Since 3/27/1998 - Daily Trading Volume from 3/27/1998 to 1/16/2001
Price Range Volume (000)
- ----------- ------------
10.00 - 11.99 4,785
12.00 - 13.99 4,151
14.00 - 15.99 7,887
16.00 - 17.99 9,440
18.00 - 19.99 5,877
20.00 - 21.99 4,687
22.00 - 23.99 4,965
24.00 - 25.99 5,257
26.00 - 27.99 13,365
28.00 - 29.99 9,011
30.00 - 31.99 3,336
32.00 - 32.69 669
Weighted Average Price: 21.51
Total Volume for Period: 73.4
Average Daily Trading Volume (a): 92,897
Graph 2 - One Year - Daily Trading Volume from 1/17/2000 to 1/16/2001
Price Range Volume (000)
- ----------- ------------
10.00 - 10.99 842
11.00 - 11.99 3,798
12.00 - 12.99 1,118
13.00 - 13.99 421
14.00 - 14.99 1,914
15.00 - 15.99 461
16.00 - 16.99 2,837
17.00 - 17.99 1,136
18.00 - 18.99 782
19.00 - 19.99 263
20.00 - 20.99 1,721
21.00 - 21.99 1,196
22.00 - 23.00 579
Weighted Average Price: 15.58
Total Volume for Period: 17.1
Average Daily Trading Volume (a): 65,139
Graph 3 - Since 3/27/2000 - Daily Trading Volume 3/27/2000 to 1/16/2001
Price Range Volume (000)
- ----------- ------------
12.00 - 12.99 201
13.00 - 13.99 369
14.00 - 14.99 1,914
15.00 - 15.99 461
16.00 - 16.99 2,837
17.00 - 17.99 1,136
18.00 - 18.99 782
19.00 - 19.99 263
20.00 - 20.99 1,721
21.00 - 21.99 1,196
22.00 - 23.00 579
Weighted Average Price: 17.63
Total Volume for Period: 11.5
Average Daily Trading Volume (a): 54,049
Graph 4 - Three Months - Daily Trading Volume from 10/16/2000 to 1/16/2001
Price Range Volume (000)
- ----------- ------------
17.10 - 17.49 80
17.50 - 17.89 167
17.90 - 18.29
18.30 - 18.69 438
18.70 - 19.09 200
19.10 - 19.49 125
19.50 - 19.89
19.90 - 20.29 440
20.30 - 20.69 591
20.70 - 21.09 951
21.10 - 21.49 693
21.50 - 21.89 242
21.90 - 22.29 249
22.30 - 23.00 330
Weighted Average Price: 20.52
Total Volume for Period: 4.5
Average Daily Trading Volume (a): 67,249
(a) Excludes first 7 trading days after IPO]
Mars
Shares Traded at Specific Prices
[Graph depicting Mars shares traded as specified prices. This graph
shows the daily trading volume of Mars shares as set forth below
Mars Shares Traded at Specific Prices - Daily Trading Volume from 3/1/2000 to
4/27/2000
Price Range Volume (000)
- ----------- ------------
10.50 - 10.89 415
10.90 - 11.29 1,073
11.30 - 11.69 1,172
11.70 - 12.09 120
12.10 - 12.49
12.50 - 12.89 133
12.90 - 13.29 74
13.30 - 13.69
13.70 - 14.09 143
14.10 - 14.49 355
14.50 - 14.89 548
14.90 - 15.30 373
Weighted Average Price: 12.41
Total Volume for Period: 4.4 mil.
Average Daily Trading Volume: 104,912]
Mars Top 25 US Institutional and Fund Shareholders (a) [GOLDMAN SACH LOGO]
(US Dollars)
Institution or Fund Shares as of Shareholder Since % of Mars % of Top 25 Weighted Avg.
9/1/2000 Price(b)(c)
Transamerica Investment Management LLC 6,782,500 Mar-1998 10.72% 48.46% $25
Goldman Sachs & Company 1,800,000 Jun-2000 2.85% 12.86% $15
Armstrong Shaw Associates, Inc. 1,149,305 Jun-2000 1.82% 8.21% $17
Massachusetts Financial Services 1,135,236 Sep-1999 1.79% 8.11% $16
Barclays Bank Plc 626,902 Mar-1998 0.99% 4.48% $23
Vanguard Group, Inc. 430,471 Mar-1998 0.68% 3.08% $19
Marshfield Associates 285,310 Mar-2000 0.45% 2.04% $14
State Street Corporation 237,816 Mar-1998 0.38% 1.70% $20
Mellon Bank, N.A. 206,698 Mar-1998 0.33% 1.48% $21
Deutsche Asset Management Americas 181,556 Mar-1998 0.29% 1.30% $21
College Retirement Equities Fund 159,951 Mar-1998 0.25% 1.14% $23
New York State Teachers' Retirement System 152,495 Jun-1998 0.24% 1.09% $28
Charles Schwab Investment 147,800 Mar-1999 0.23% 1.06% $17
California Public Employees Retirement 142,425 Dec-1998 0.23% 1.02% $23
Soros Fund Management, LLC 97,200 Mar-2000 0.15% 0.69% $12
Northern Trust Company 93,242 Mar-1998 0.15% 0.67% $25
Batterymarch Financial Management 89,500 Jun-1999 0.14% 0.64% $17
California State Teacher's Retirement System 47,992 Mar-1998 0.08% 0.34% $26
Merrill Lynch Investment Managers(NJ) 43,767 Jun-2000 0.07% 0.31% $15
Smith Barney Asset Management 39,956 Jun-2000 0.06% 0.29% $15
Florida State Board of Administration 34,725 Jun-1998 0.05% 0.25% $26
Northern Trust Global Investments 32,331 Mar-1998 0.05% 0.23% $19
General Motors Investment Management Corp. 30,000 Jun-2000 0.05% 0.21% $15
World Asset Management 25,564 Jun-2000 0.04% 0.18% $19
Chase Asset Management 23,071 Jun-1998 0.04% 0.16% $26
- -------------------------------------------------------------------------------------------------------------------------------
Total 13,995,813 22.13% $21
Median $19
Source: Carson
(a) Excludes European institutional and fund shareholders due to lack of
quarterly transaction data for weighted average calculation.
(b) Assumes shares held at the time of the spinoff were purchased at 3/1998
average price.
(c) Assumes that the first shares purchased are the first sold.
Mars
Daily Common Stock Price History Since Inception
[This graph is a review of the historical closing market prices of the shares of
MARS from the date of the formation of MARS on March 27, 1998 to January 16,
2001. During this period, shares of MARS traded at a high of $32.69 and a low of
$10.31. Its closing market price on January 16, 2001 was $22.69, 13.2% below its
initial price of $26.13.]
Mars vs. S&P 500 vs. Comparables
Daily Indexed Trading History Since Inception
[This graph is a comparison of the daily indexed trading history for shares of
MARS, a composite comprised of Morrison Management Specialists, Inc. and
ServiceMaster Company, and the S&P 500, since the formation of MARS on March 27,
1998 to January 16, 2001. The indexed trading price for shares of MARS on March
27, 1998 was $26.13 and on January 16, 2001 was $22.69. The indexed trading
price for shares of MARS on the occurrence of the following events were as
follows:
Date MARS Price S&P 500 Composite Event
Price Price
May 11, 1998 $27.00 $26.39 $26.40 MARS reports quarterly net income of $4 million and an increase in
sales and profits of 4% and 9%, respectively, from the previous
quarter.
December 22, 1998 $28.50 $23.79 $24.24 Net income up 58%, sales up 2% and operating profit up 11% from
previous year. EPS of $0.52 is lower than analysts expectations of
$0.84.
May 3, 1999 $22.94 $32.31 $25.58 Charles O'Dell resigns as CEO of MARS, Michel Landel named
president, CEO and board member. MARS reported decreased contract
retention rates and sluggish sales growth.
November 3, 1999 $18.00 $32.31 $22.87 Lawrence E. Hyatt resigns as senior vice president and chief
financial officer of MARS.
January 11, 2000 $12.69 $34.31 $22.96 Reported net income of $27.8 million down 2% from previous quarter
and down 16% from previous year. Sales for quarter increased 6.5%
from previous year. Profit growth lagged sales growth due to higher
labor and start-up costs for quarter. EPS of $0.94 meets analysts
expectations.
April 7, 2000 $13.75 $36.16 $26.08 Earnings up 5% and sales up 8% from previous quarter.
July 14, 2000 $16.88 $36.01 $28.75 3rd quarter earnings up 22% from previous quarter driven by double
digit growth in operating profits in health care and corporate
divisions.
October 19, 2000 $17.25 $33.12 $26.15 7 % rise in sales and 11% rise in earnings for fourth quarter.
First profitable fourth quarter since 1998. EPS of $1.00 meets
analysts expectations.
January 11, 2001 $21.75 $31.64 $30.61 Quarterly net income of $36 million, up 29% compared to same period
previous year. Sales up 6% and operating profit up 14% from
previous year.]
Mars
Daily Common Stock Price History
[This graph is a review of the historical closing market prices for shares of
MARS for the period from December 1, 1999 to January 16, 2001. During this
period, shares of MARS traded at a high of $22.69 and a low of $10.31. Its
closing market price on January 16, 2001 was $22.69, up 42.4% from its
December 1, 1999 closing market price of $15.94.]
Comparables
Daily Indexed Common Stock Price History
[This graph offers a comparison of the daily indexed common stock price history
for shares of MARS, S&P Pharmaceuticals, S&P Foods and Goldman Sachs
Technologies indices for the period from March 27, 2000 to January 16, 2001. The
indexed trading price for shares of MARS on March 27, 2000 was $100 and on
January 16, 2001 was $189.06, +89.1% from March 27, 2000. The indexed trading
price for shares comprising the S&P Pharmaceuticals Index on March 27, 2000 was
$100.00 and on January 16, 2001 was $124.62, +24.6% from March 27, 2000. The
indexed trading price for shares comprising the S&P Foods Index on March 27,
2000 was $100.00 and on January 16, 2001 was $137.08, +37.1% from March 27,
2000. The indexed trading price for shares comprising the GS Technologies Index
on March 27, 2000 was $100.00 and on January 16, 2001 was $52.62, -47.4% from
March 27, 2000.]
Mars vs. ServiceMaster Co.
Daily Indexed Prices
[This graph is a review of the daily indexed common stock price history for
shares of MARS and ServiceMaster Company for the period from December 1, 1999 to
January 16, 2001. The indexed trading price for shares of MARS on December 1,
1999 was $100.00 and on January 16, 2001 was $142.35, +42.4% from December 1,
1999. The indexed trading price for shares of MARS on the occurrence of the
following events were as follows:
Date MARS Price Event
December 28, 1999 $86.67 MARS reports that EPS is expected to be 5% below analyst's
estimates.
April 6, 2000 $83.14 MARS reports an increase in earnings of 5% and sales of 8% from
previous year.
July 13, 2000 $105.88 MARS exceeds quarterly EPS estimates.
October 19, 2000 $108.24 MARS reports 7% rise in sales and 11% rise in earnings for fourth
quarter. First profitable fourth quarter since 1998. Expects EPS
to grow in mid-teens and sales in 5% to 6% range.
January 11, 2001 $136.47 MARS reports quarterly net income of $36 million, up 29% from
previous quarter. Sales up 6% and operating profit up 14% from
previous years.
The indexed trading price for shares of ServiceMaster Company on December 1,
1999 was $100.00 and on January 16, 2001 was $88.83, -11.2% from December 1,
1999. The indexed trading price for shares of ServiceMaster Company on the
occurrence of the following events were as follows:
Date ServiceMaster Price Event
January 25, 2000 $111.65 ServiceMaster reports 18% increase in net income, 13% increase in
EPS and a revenue growth of 21% for the quarter.
April 25, 2000 $103.40 ServiceMaster meets analysts expectations and reports 21% growth in
revenues for quarter.
July 24, 2000 $72.33 ServiceMaster reports lower than expected earnings and that second
quarter performance is not up to plan.
October 2, 2000 $67.96 ServiceMaster downgrades earnings estimates.
October 25, 2000 $70.39 ServiceMaster meets modest analyst expectations and reports trouble
digesting new acquisitions.]
Mars vs. Morrison Management
Daily Indexed Common Stock Price History
[This graph is a review of the daily indexed common stock price history for
shares of MARS and Morrison Management Specialists for the period from March 27,
2000 to January 16, 2001. The indexed trading price for shares of MARS on March
27, 2000 was $100.00, trading, over the graphed period, at a high of $189.06 and
a low of $100. The closing indexed stock price for shares of MARS on January 16,
2001 was $189.06, up 89.1% from March 27, 2000. The indexed stock price for
shares of Morrison Management Specialists on March 27, 2000 was $100.00,
trading, over the graphed period, at a high of $169.01 and a low of $98.64. The
closing indexed stock price of Morrison Management Specialists on January 16,
2001 was $166.36, up 66.4% from March 27, 2000.]
Mars vs. ServiceMaster Co
Daily Indexed Prices
[This graph is a review of the daily indexed common stock price history for
shares of MARS and ServiceMaster Company for the period from December 1, 1999 to
January 16, 2001. The indexed trading price for shares of MARS on December 1,
1999 was $100.00 and on January 16, 2001 was $142.35, +42.4% from December 1,
1999. The indexed trading price for shares of MARS on the occurrence of the
following events were as follows:
Date MARS Price Event
December 28, 1999 $86.67 MARS reports that EPS is expected to be 5% below analyst's
estimates.
April 6, 2000 $83.14 MARS reports an increase in earnings of 5% and sales of 8% from
previous year.
July 13, 2000 $105.88 MARS exceeds quarterly EPS estimates.
October 19, 2000 $108.24 MARS reports 7% rise in sales and 11% rise in earnings for fourth
quarter. First profitable fourth quarter since 1998. Expects EPS
to grow in mid-teens and sales in 5% to 6% range.
January 11, 2001 $136.47 MARS reports quarterly net income of $36 million, up 29% from
previous quarter. Sales up 6% and operating profit up 14% from
previous years.
The indexed trading price for shares of ServiceMaster Company on December 1,
1999 was $100.00 and on January 16, 2001 was $88.83, -11.2% from December 1,
1999. The indexed trading price for shares of ServiceMaster Company on the
occurrence of the following events were as follows:
Date ServiceMaster Price Event
January 25, 2000 $111.65 ServiceMaster reports 18% increase in net income, 13% increase in
EPS and revenue growth of 21% for the quarter.
April 25, 2000 $103.40 ServiceMaster meets analysts expectations and reports 21% growth in
revenues for quarter.
July 24, 2000 $72.33 ServiceMaster reports lower than expected earnings and that second
quarter performance is not up to plan.
October 2, 2000 $67.96 ServiceMaster downgrades earnings estimates.
October 25, 2000 $70.39 ServiceMaster meets modest analyst expectations and reports trouble
digesting new acquisitions.]
Mars vs. ServiceMaster Company
Daily Indexed Common Stock Price History
[This graph is a review of the daily indexed common stock price history for
shares of MARS and ServiceMaster Company for the period from March 27, 2000 to
January 16, 2001. The indexed trading price for shares of MARS on March 27, 2000
was $100.00, trading, over the graphed period, at a high of $189.06 and a low of
$100.00. The closing indexed stock price for shares of MARS on January 16, 2001
was $189.06, up 89.1% from March 27, 2000. The indexed stock price for shares of
ServiceMaster Company on March 27, 2000 was $100.00, trading, over the graphed
period, at a high of $115.95 and a low of $74.46. The closing indexed stock
price of ServiceMaster Company on January 16, 2001 was $97.34, down 2.7% from
March 27, 2000.]
Catering and Business Services Companies
Public Market Valuation [GOLDMAN SACHS LOGO]
(US Dollars in Millions, except per share amounts)
1 2 3 4 5 6 7 8 9
Market Value - January 17, 2001
% of 52 Equity Enterprise Revenue EBIT
Wk High Market Cap Value CY 2000 CY 2001 CY 2002 CY 2000 CY 2001 CY 2002
Company
Europe
- ------
Milky Way 97% $ 6,389 $ 8,009 0.8 x 0.7 x 0.7 x 16.0 x 14.6 x 13.1 x
Concession
- ----------
Autogrill Spa 92% 3,011 4,003 1.4 1.3 1.2 32.4 27.9 23.8
50/50 Concession and Contract
- ------------------------------
Groupe Elior 95% 1,408 1,875 1.1 1.0 0.9 21.9 18.8 16.7
Contract
- --------
Compass Hospitality (a) 90% 16,364 21,297 1.8 1.6 1.5 14.9 13.8 12.4
International Service System A/S 90% 2,838 3,362 0.9 0.8 0.8 34.7 27.6 23.9
European Mean (b) 92% 1.3 x 1.2 x 1.1 x 26.0 x 22.0 x 19.2 x
European Median (b) 91% 1.2 x 1.1 x 1.1 x 27.1 x 23.2 x 20.3 x
U.S.A
- -----
Mars (c) 100% $ 1,566 $ 2,515 0.5 x 0.5 x 0.5 x 12.4 x 11.2 x 10.0 x
Morrison Management 94% 467 521 0.6 0.5 0.5 16.3 13.3 11.4
Specialists, Inc. (d)
Servicemaster Company
80% 3,555 5,398 0.9 0.9 0.8 12.0 10.9 9.6
10 11 12 13
CY-2000 PE/
5-year
Growth
Company CY 2001 CY 2002 CY2002
Europe
- ------
Milky Way 53.4 x 31.0 x 28.0 x 2.8 x
Concession
- ----------
Autogrill Spa 318.0 70.7 45.4 13.8
50/50 Concession and Contract
- ------------------------------
Groupe Elior 51.6 25.0 24.7 3.4
Contract
- --------
Compass Hospitality (a) 20.5 18.4 16.1 1.6
International Service System A/S 85.8 54.9 38.8 5.7
European Mean (b) 52.6 32.8 x 26.5 x 3.6 x
European Median (b) 51.6 25.0 x 24.7 x 3.4 x
U.S.A
- -----
Mars (c) 22.9 18.7x 15.3 x 1.6
Morrison Management
Specialists, Inc. (d) 24.9 20.0 17.1 1.4
Servicemaster Company 18.7 17.5 14.7 1.6
Source: 1999 Annual Report and 2000 Research Reports
(a) Granada Compass without Granada Media
(b) Excludes Milky Way EPS mean and median calculations excludes Autogrill Spa
(c) 2000-02 EPS based on HSBC estimates Long-term EPS growth based on IBES
estimates
(d) Reflects an assumption that all contracts are accounted for on a profit and
loss basis. The revenue multiplies based on GAAp revenue figures are 1 1x in
CY 2000, 0.9x in CY 2001 and 0.8 in CY 2002
Catering and Business Services Companies [GOLDMAN SACHS LOGO]
Operating Statistics
1 2 3 4 5 6 7 8 9 10
Growth Margins
Revenue EBIT EPS EBIT Net Income
CY 2001 CY 2002 CY 2001 CY 2002 CY 2001 CY2002 CY 200 CY 2001 CY 2000 CY 2001
Europe
- ------
Milky Way 6.3% 10.6% 9.5% 11.9% 72.5% 10.6% 5.0% 5.1% 1.2% 1.9%
Concession
- ----------
Autogrill Spa 8.6% 8.6% 15.8% 17.5% 350.0% 55.6% 4.4% 4.7% 0.3% 1.4%
50/50 Concession and Contract
- -----------------------------
Groupe Elior 9.6% 8.3% 16.3% 12.6% 106.4% 1.3% 4.9% 5.2% 1.6% 2.9%
Contract
- --------
Compass Hospitality (a) 6.8% 7.5% 7.9% 11.4% 11.6% 14.6% 11.8% 11.9% 6.6% 6.9%
International Service System A/S 12.7% 6.2% 26.0% 15.2% 56.1% 41.8% 2.7% 3.0% 0.9% 1.3%
European Mean (b) 9.4% 7.6% 16.5% 14.2% 58.0% 19.2% 5.9% 6.2% 2.3% 3.1%
European Median (b) 9.1% 7.9% 16.0% 13.9% 56.1% 14.6% 4.6% 4.9% 1.2% 2.2%
U.S.A
- -----
Mars (c) 4.3% 8.0% 10.4% 12.3% 22.5% 21.9% 4.2% 4.5% 1.4% 1.7%
Morrison Management
Specialists, Inc. (d) 13.2% 15.7% 22.5% 16.8% 24.4% 17.2% 3.8% 4.1% 2.2% 2.4%
Servicemaster Company 4.4% 6.3% 10.6% 13.5% 6.3% 19.4% 7.4% 7.9% 3.2% 3.2%
Servicemaster Management
Services (e) 1.0% 1.0% -4.5% 7.8% N.A. N.A. 3.6% 3.4% N.A. N.A.
11 12
Net Debt/
Market Long-term
Equity EPS Growth
Europe
- ------
Milky Way 25.4% 19.3%
Concession
- ----------
Autogrill Spa 33.0% 23.0%
50/50 Concession and Contract
- -----------------------------
Groupe Elior 33.1% 15.3%
Contract
- --------
Compass Hospitality (a) 30.1% 12.5%
International Service System A/S 18.5% 15.0%
European Mean (b) 28.7% 16.5%
European Median (b) 31.6% 15.2%
U.S.A
- -----
Mars (c) 60.6% 14.5%
Morrison Management
Specialists, Inc. (d) 11.6% 18.0%
Servicemaster Company 51.8% 12.0%
Servicemaster Management
Services (e) N.A. N.A.
Source: 1999 Annual Report and 2000 Research Reports
(a) Granada Compass without Granada Media Long-term EPS growth estimates are for
2000-02. Morgan Stanley Dean Witter estimates 2000-05 EPS growth of 10%.
(b) Excludes Milky Way EPS ,mean and median calculations excludes Autogril Spa
(c) 2001-02 EPs based on HSBc estimates. Long-term EPs growth based on IBES
estimates.
(d) Reflects an assumption that all contracts are accounted for on a profit and
loss basis The EBIT margins based on GAAP revenue figures are 6.4% in CY
2000 and 68% in CY 2001.
(e) Based on Morgan Stanley Dean Witter estimates.
Analysis of Premiums in Acquisition Transactions [GOLDMAN SACHS LOGO]
Involving Insiders
Minority Buyouts (a) (>$100m) Control Buyouts (b) (>$100m)
Number in Initial Final Number in Initial Final
Sample Premium Premium Sample Premium Premium
(c)(e) (d)(e) (c)(e) (d)(e)
Stock Only 17 0.4% 18.3% Stock Only 1 21.2% 28.9%
Cash Only 60 7.1% 20.7% Cash Only 4 19.6% 27.6%
Mix 7 6.9% (f) 7.2% (f) Mix 1 2.2% 5.8%
All 84 5.4% 19.6% All 6 13.8% 25.7%
(a) Acquiror had more than 50% ownership prior to transaction. Period 6/1989 -
5/2000.
(b) Acquiror has less than 50% ownership prior to transaction. Period 3/1995 -
11/1999.
(c) Initial premiums were found by calculating the percentage difference between
the earliest mentioned offer price and the undisturbed target stock price.
Source Company filings and public information.
(d) Final premiums were found by calculating the percentage difference between
the consideration ultimately paid and the undisturbed target stock price.
Source Company filings and public information.
Analysis at Various Prices for Mars [GOLDMAN SACHS LOGO]
(US Dollars in millions, except for per share data)
Premium to Market Price 0.0% 5.0% 10.0% 15.0% 20.0%
Purchase Price Per Share ($)(a) 24.44 25.66 26.88 28.11 29.33
Equity Consideration - Basic ($) (a) 1,545.9 1,623.2 1,700.5 1,777.8 1,855.1
Equity Consideration - Options (b) 28.9 36.8 44.7 52.7 60.6
------- ------- ------- ------- -------
Equity Consideration - Diluted ($) (b)(c) 1,574.8 1,660.0 1,745.3 1,830.5 1,915.7
Net Debt (d) 949.0 949.0 949.0 949.0 949.0
Enterprise Value (d) 2,523.8 2,609.0 2,694.3 2,779.5 2,864.7
Enterprise Value / Sales (e) CY 2000E 4,798.7 0.5 x 0.5 x 0.6 x 0.6 x 0.6 x
CY 2001E 5,004.7 0.5 0.5 0.5 0.6 0.6
CY 2002E 5,407.3 0.5 0.5 0.5 0.5 0.5
Enterprise Value / EBIT (e) CY 2000E 202.9 12.4 x 12.9 x 13.3 x 13.7 x 14.1 x
CY 2001E 224.0 11.3 11.6 12.0 12.4 12.8
CY 2002E 251.6 10.0 10.4 10.7 11.0 11.4
Eq. Cons. - Diluted / Net Income (e) CY 2000E 68.3 23.0 x 24.3 x 25.5 x 26.8 x 28.0 x
CY 2001E 83.7 18.8 19.8 20.9 21.9 22.9
CY 2002E 102.1 15.4 16.3 17.1 17.9 18.8
Premium to Trading Averages (f) Prior 30 days 21.5 14% 20% 25% 31% 37%
Prior 60 days 21.1 16% 22% 27% 33% 39%
Prior 90 days 20.3 20% 26% 32% 38% 44%
Prior 180 days 18.4 33% 39% 46% 53% 59%
(a) Stock price as of January 17, 2001 ($) = 24.44
(b) Assumes 63.3 million basic shares outstanding as of December 1, 2000.
(c) Assumes exercise of 6.5 million options outstanding with a weighted average
strike price of $20.00. Assumes options outstanding are not tax-deductible.
(d) Assumes net debt of $949.0 million as of December 1, 2000 as per 10-Q.
(e) Estimates as per HSBC Analyst Report dated August 29, 2000.
(f) Based on calendar days.
Summary of Selected Transactions in the Catering Industry (a)
(Dollars in Millions) [GOLDMAN SACHS LOGO]
Levered Levered
Announcement Total Transaction Multiple of Multiple of
Date Acquiror/Target Equity Value Value LTM Sales LTM EBIT
---------------------------------------------------
North American Transactions
---------------------------------------------------
Concession
----------
03/30/00 Aramark (US) / Ogden (US) (b) 225 236 0.6 N.A.
07/26/99 Autogrill Spa (Italy) / Host Marriott Services (US) 547 948 0.7 15.5
06/03/98 Compass Group (UK) / Restaurant Associates Ind. (US) 88 88 N.A. 23.6
Contract
--------
11/03/00 Granada Compass (UK) / Beaver Foods (Canada) N.A. $ 98 0.5x N.A.
09/30/97 Sodexho Marriott Services (US) / Marriott Management
Services (US) 610 2,054 0.6 13.2
05/27/97 Compass Group (UK) / Daka International (US) 194 194 0.48 N.A.
08/23/96 Compass Group (UK) / Service America Corp (US) N.A. 115 0.3 N.A.
04/27/94 Compass Group (UK) / Canteen Corp (US) 450 470 0.5 12.4
------------------------------------------------------------
US Median 0.50 x 14.35 x
US Arithmetic Mean 0.53 16.18
------------------------------------------------------------
US Harmonic Mean 0.49 15.19
------------------------------------------------------------
---------------------------------------------------
European Transactions
---------------------------------------------------
Contract
--------
05/17/00 Granada Group (UK) / Compass Group (UK) 8,089 9,681 1.3 x 23.7 x
10/02/99 Compass Group (UK) / P&O Australia N.A. 90 0.6 N.A.
07/23/97 Compass Group (UK) / SHRM (France) 380 380 0.6 14.5
04/17/96 Compass Group (UK) / Eurest France (France) 205 305 0.5 12.2
12/29/95 Sodexho (France) / Partena (Sweden) 143 176 0.5 11.1
07/06/95 Compass Group (UK) / Eurest International (France) 850 810 0.8 N.A.
02/01/95 Sodexho (France) / Gardner Merchant (UK) 927 1,215 0.6 11.7
03/24/93 Granada (UK) / Sutcliffe Catering (UK) 584 600 0.7 12.4
------------------------------------------------------------
European Median 0.60 x 12.30 x
European Arithmetic Mean 0.70 14.27
------------------------------------------------------------
European Harmonic Mean 0.64 13.35
------------------------------------------------------------
--------------------------------------------------- ------------------------------------------
Europe + US Transactions Median 0.60 x 12.80 x
---------------------------------------------------
Arithmetic Mean 0.62 15.03
------------------------------------------
Harmonic Mean 0.56 14.03
------------------------------------------
Low 0.30 11.10
High 1.30 23.70
------------------------------------------
---------------------------------------------- ------------------------------------------
Compass/Morrison Deal Comparison (c) Harmonic Mean 0.56 x 14.40 x
----------------------------------------------
Low 0.35 10.00
High 1.37 23.40
------------------------------------------
Unlevered
Leveraged Multiple of
Announcement Multiple of LTM Net Comments
Date Acquiror/Target LTM EBITDA Income
----------------------------------------------
North American Transactions
----------------------------------------------
Concession
----------
03/30/00 Aramark (US) / Ogden (US) (b) 6.8 N.A. Cash
07/26/99 Autogrill Spa (Italy) / Host Marriott Services (US) 7.5 22.7 Cash
06/03/98 Compass Group (UK) / Restaurant Associates Ind. (US) 13.3 N.A Cash
Contract
--------
11/03/00 Granada Compass (UK) / Beaver Foods (Canada) N.A. N.A Cash
09/30/97 Sodexho Marriott Services (US) / Marriott Management 10.6 N.A Marriott Management Services was
Services (US) split from Marriott
International and merged with
Sodexho North America operations
forming SMS
05/27/97 Compass Group (UK) / Daka International (US) 10.8 N.A Cash
08/23/96 Compass Group (UK) / Service America Corp (US) N.A. N.A Mixed: Cash and Stock Cash
04/27/94 Compass Group (UK) / Canteen Corp (US) N.A. 19.8 Cash
-----------------------------
10.60 x 21.25 x
9.80 21.25
-----------------------------
9.22 21.15
-----------------------------
---------------------------------------------------
European Transactions
---------------------------------------------------
Contract
--------
05/17/00 Granada Group (UK) / Compass Group (UK) 18.9 x N.A Stock swap transaction
10/02/99 Compass Group (UK) / P&O Australia N.A. N.A Cash
07/23/97 Compass Group (UK) / SHRM (France) N.A. N.A Cash
04/17/96 Compass Group (UK) / Eurest France (France) N.A. 20.5 Cash
12/29/95 Sodexho (France) / Partena (Sweden) 8.6 23.1 Cash
07/06/95 Compass Group (UK) / Eurest International (France) N.A. N.A Mixed: 50% cash/ 50% stock
02/01/95 Sodexho (France) / Gardner Merchant (UK) 10.8 35.9 Cash
03/24/93 Granada (UK) / Sutcliffe Catering (UK) N.A. N.A Cash
-----------------------------
10.80 23.10 x
12.77 26.50
-----------------------------
11.46 25.02
-----------------------------
--------------------------------------------------- -----------------------------
Europe + US Transactions 10.70 x 22.07 x
---------------------------------------------------
10.91 24.40
-----------------------------
9.95 23.31
-----------------------------
6.80 19.80
18.90 35.90
-----------------------------
--------------------------------------------------- -----------------------------
Compass/Morrison Deal Comparison (c) 8.90 x 23.80 x
---------------------------------------------------
7.20 18.10
12.20 39.30
-----------------------------
(a) Excludes in-flight catering transactions.
(b) Multiples based on 2000E projected numbers excluding 2 properties, Anaheim
and Corel Center. Based on sales of $395mm and EBITDA of $34.6mm.
(c) Source: Morrison 14D-9 dated 2/16/2001.
Comparison of Selected Buyouts of Public Majority [GOLDMAN SACHS LOGO]
Shareholders
Initial
Date of 52 Week Premium
Acquiring Company/ Undisturbed Undisturbed Date of High Prior to Over 52
Date Acquired Company Stock Price Stock Price Announcement Ann. Week High
11/1999 Three Cities Research $ 7.25 11/19/99 11/22/99 $ 8.12 17.0%
Garden Ridge Corp.
6/1999 Merck (a) $27.88 6/7/99 6/8/99 $ 31.50 17.5%
VWR
7/1997 Fujitsu (c) 10.13 7/25/97 7/30/97 13.63 -22.4%
Amdahl
2/1999 Delta 31.94 2/15/99 2/16/99 50.00 -32.0%
ASA (b)
3/1995 Union/Pacific 24.88 3/6/95 3/10/95 27.75 22.5%
Chicago & North Western
- ----------------------------------------------------------------------------------------------------------------------
Low (h) -32.0%
Mean (h) -3.6%
Median (h) -2.5%
High (h) 22.5%
- ----------------------------------------------------------------------------------------------------------------------
Inside Final Aggregate
Ownership Consideration For Initial Premium Final Premium
Before the Consideration Amount Acquired Initial Bid Over Undist. Final Bid Over Undist.
Date Transaction type ($millions) Per Share Stock Price Per Share Stock Price
11/1999 29.3% Cash $ 144.4 $ 9.50 31.0% $ 11.50 58.6%
6/1999 49.9% Cash $ 575.0 $ 37.00 32.7% $ 37.00 32.7%
7/1997 42.0% Cash 910.0 10.57 4.4% 12.40 22.5%
2/1999 29.0% Cash 700.0 34.00 6.5% 34.00 6.5%
3/1995 28.8% Cash 1,200.0 34.00 36.7% 35.00 40.7%
- ----------------------------------------------------------------------------------------------------------------------------
Low (h) 28.8% 4.0 $ 10.57 4.4% 6.5%
Mean (h) 37.4% $ 28.89 20.1% 25.6%
Median (h) 35.5% $ 34.00 19.6% 27.6%
High (h) 49.9% $ 37.00 36.7% 40.7%
- ----------------------------------------------------------------------------------------------------------------------------
Percent Special Buyer
Increase Committee Representation
Date in Offer Appointed on Board
11/1999 21.1% Yes 1 out of 7 Directors(d)
6/1999 0.0% Yes 5 out of 11 Directors
7/1997 17.3% Yes 3 out of 10 Directors (f)
2/1999 0.0% No 0 out of 7 Directors (e)
3/1995 2.9% No 1 out of 7 Directors
- ------------------------------------------------------------------------------------------
Low (h)
Mean (h)
Median (h)
High (h)
- ------------------------------------------------------------------------------------------
(a) Discussions between Merck and VWR management occurred for some time
before the offer was made and the transaction was publicly announced.
(b) Delta was already renegotiating its Connection agreement with ASA. This
information was not public and would have depressed ASA's stock price.
(c) Fujitsu increased its final bid from $12.00 to $12.40 when it settled a
lawsuit filed by dissenting shareholders who argued that Fujitsu underpaid
for Amdahl.
(d) The change in premium was calculated by taking the difference between the
offer price based on the old exchange rate (1.34 shares) and the offer
price based on the new exchange rate (1.425 shares) on the day Vons' board
approved the transaction.
(e) As long as Delta maintained 10% ownership of ASA, it was permitted to fill
2 Directors positions. When the last Delta appointed Director retired,
Delta chose not to appoint anyone to replace him.
(f) J. Sidney Webb, a Vons Director, was the former president of a joint
venture between TRW and Fujitsu. Because Mr. Webb spent most of his career
at TRW, he is not considered a Fujitsu representative.
(g) Three Cities Research Inc. held only one board seat, yet three additional
board members were affiliated with various Three Cities Research Inc.
companies.
(h) Excludes Three Cities Research Inc acquisition of Garden Ridge Corp.
Comparison of Selected Buyouts of Public Majority [GOLDMAN SACHS
Shareholders LOGO]
Stock Initial Inside Consideration Aggregate
Price One 52 Week Premium Ownership Type Consideration For
Acquiring Company/ Day Prior Date High Prior Over 52 Before the Amount Acquired
Date Acquired Company to Ann. of Ann. to Ann. Week High Transaction (000's)
5/2000 Total Fina Elf SA $ 169.29 5/25/2000 $99.25 90.5% 95.6% Stock $ 2,327,00
Elf Aquitaine SA
5/2000 TietoEnator Oyj Abp 33.50 5/15/2000 45.61 1.3 55.7 Stock 262,900
Entra Data AB
5/2000 Fiat SpA (a) 4.04 5/5/2000 14.94 0.0 70.0 Cash 444,900
Magnetti Marelli SpA
5/2000 Fiat SpA 11.79 5/5/2000 15.25 (5.8) 75.0 Cash 355,700
Toro Assicurazioni SpA
4/2000 Banco Santaander 13.27 4/19/2001 4.26 NA 70.7 Cash 132,700
Central Hispano
Credital Predial
Portugues, S.A.
4/2000 Taylor Woodrow PLC 5.15 4/7/2000 7.52 NA 55.0 Cash 142,200
Monarch Development
Corporation
3/2000 Hartford Financial 42.56 3/27/2000 55.00 (20.0) 81.5 Cash 1,324,600
Services Group Inc
Hartford Life Inc.
3/2000 Security Capital Group 2.75 3/23/2000 5.13 (33.7) 87.0 Cash 156,800
Inc.
Homestead Village Inc.
3/2000 Citigroup Inc. 33.69 3/21/2000 41.88 (0.9) 85.0 Cash 2,449,300
Travelers Property
Casualty
3/2000 Spotless Group Limited 0.73 3/16/2000 1.05 (10.6) 67.0 Stock 101,700
Spotless Services
Limited
3/2000 Israel Chemicals 4.09 3/7/2000 4.40 2.2 89.2 Cash 143,900
Limited
Dead Sea Works Limited
3/2000 Linde AG 42.38 3/3/2000 55.30 44.7 65.0 Cash 205,500
WA Hoek's Machine
1/2000 Thermo Instruments 18.50 1/31/2000 26.25 6.7 84.0 Cash 167,900
Systems Inc
Thermo BioAnalysis
Corporation
1/2000 Corp Mafre SA 27.03 1/25/2000 23.80 37.1 68.8 Cash 325,600
Mapfre Vida Seguros
1/2000 Snia-BPD SpA 2.99 1/10/2000 4.66 (27.9) 75.0 Cash/Stock 128,500
Sorin Biomedica SpA
1/2000 Telefonica SA 2.81 1/13/2000 3.97 NA 51.8 Stock 4,066,100
Telefonica Argentina SA
11/1999 Alcoa Inc. / 14.06 11/13/1999 20.31 (16.3) 84.6 Cash 261,800
Howmet International
Initial Premium Final Premium Percent
Acquiring Company/ Initial Bid Over Market Final Bid Over Market Increase
Date Acquired Company Per Share Price Per Share Price in Offer
5/2000 Total Fina Elf SA $ 189.03 11.7% $ 189.03 11.7% 0.0%
Elf Aquitaine SA
5/2000 TietoEnator Oyj Abp 46.19 37.9 46.19 37.9 0.0
Entra Data AB
5/2000 Fiat SpA (a) 4.94 22.2 4.94 22.2 0.1
Magnetti Marelli SpA
5/2000 Fiat SpA 14.36 21.8 14.36 21.8 0.0
Toro Assicurazioni SpA
4/2000 Banco Santaander NA NA 13.67 3.0 NA
Central Hispano
Credital Predial
Portugues, S.A.
4/2000 Taylor Woodrow PLC NA NA 7.72 50.0 18.7
Monarch Development
Corporation
3/2000 Hartford Financial 44.00 3.4 50.50 18.7 14.8
Services Group Inc
Hartford Life Inc.
3/2000 Security Capital Group 3.40 23.6 4.10 49.1 20.6
Inc.
Homestead Village Inc.
3/2000 Citigroup Inc. 41.50 23.2 41.95 24.5 1.1
Travelers Property
Casualty
3/2000 Spotless Group Limited 0.94 28.8 0.94 29.3 0.0
Spotless Services
Limited
3/2000 Israel Chemicals 4.50 9.9 4.50 9.9 0.1
Limited
Dead Sea Works Limited
3/2000 Linde AG 80.05 88.9 80.05 6.7 0.0
WA Hoek's Machine
1/2000 Thermo Instruments 28.00 51.4 28.00 51.4 0.0
Thermo BioAnalysis
Corporation
1/2000 Corp Mafre SA 32.64 20.7 32.64 20.7 0.0
Mapfre Vida Seguros
1/2000 Snia-BPD SpA
Sorin Biomedica SpA 3.36 12.4 3.36 3.0 (0.1)
1/2000 Telefonica SA NA NA 3.94 40.0 NA
Telefonica Argentina SA
11/1999 Alcoa Inc. / 17.00 20.9 21.00 49.3 23.5
Howmet International
(1) Aggregate consideration offer both ordinary shares and preference shares.
Offered $ 10.77 per preference share.
Comparison of Selected Buyouts of Public Majority [GOLDMAN SACHS
Shareholders LOGO]
Stock Initial Inside Consideration Aggregate
Price One 52 Week Premium Ownership Type Consideration For
Acquiring Company/ Day Prior Date High Prior Over 52 Before the Amount Acquired
Date Acquired Company to Ann. of Ann. to Ann. Week High Transaction (000's)
11/1999 Amway Corporation / 9.39 11/15/1999 12.99 (1.5) 76.7 Cash 476,844
Amway Japan
11/1999 Amway Corporation / 11.75 11/15/1999 14.44 4.2 84.9 Cash 153,000
Amway Asia Pacific
9/1999 Hoechst AG / 12.91 5/19/1999 19.31 (12.3) 56.2 Cash 329,200
Celanese Canada Inc
8/1999 Worldcast(UBS 46.39 4/16/1999 67.66 N.A. 95.4 Cash 263,800
Capital) /
Groupe Valfond
8/1999 Investor Group / 15.00 7/19/1999 15.00 N.A. 90.0 Cash 151,000
Nortel Inversora SA
7/1999 Total SA / 573.87 6/9/1999 629.07 N.A. 98.7 Stock 129,200
Petrofina SA
7/1999 Viacom Inc(Natl 9.00 3/21/1999 9.56 (5.9) 80.9 Cash 191,600
Amusements) /
Spelling
Entertainment Group
6/1999 Roche Holding AG / 86.81 6/3/1999 88.63 (2.0) 67.0 Cash 4,818,000
Genentech Inc
5/1999 Global TeleSystems 199.11 4/14/1992 218.87 N.A. 52.5 Cash 189,800
Group Inc /
Omnicom
4/1999 Endesa SA / 13.33 11/5/1998 13.97 (2.3) 75.0 Cash/ Stock 1,019,300
Cia Sevillana de
Electricidad
4/1999 Endesa SA / 38.72 11/5/1998 46.51 (10.9) 87.6 Cash/ Stock 102,700
Electra de Viesgo
SA(Endesa)
4/1999 Endesa SA / 24.54 11/5/1998 N.A. N.A. 91.4 Cash/ Stock 149,800
Empresa Nacnl
Hidroelec Ribago
4/1999 Cie de Saint-Gobain 90.65 3/24/1999 100.28 N.A. 96.1 Cash 119,700
SA /
Poliet SA
2/1999 Affiliated Computer 16.22 10/16/1998 21.94 N.A. 51.0 Cash 131,900
Services /
BRC Holdings Inc
12/1998 Allianz AG / 1.32 10/30/1998 2.60 N.A. 68.0 Cash 100,700
MMI Ltd(Allianz AG)
12/1998 Investor Group / 6.68 10/14/1998 7.87 N.A. 86.6 Cash 203,600
Samancor Ltd
12/1998 Disco/Ahold 5.22 11/13/1998 15.20 N.A. 52.0 Cash 159,400
International /
Disco SA
Initial Premium Final Premium Percent
Acquiring Company/ Initial Over Market Final Bid Over Market Increase
Date Acquired Company Per Share Price Per Share Price in Offer
11/1999 Amway Corporation / 12.80 36.4 14.13 50.5 10.4
Amway Japan
11/1999 Amway Corporation / 15.50 31.9 18.00 53.2 16.1
Amway Asia Pacific
9/1999 Hoechst AG / 16.93 31.2 18.46 43.0 9.0
Celanese Canada Inc
8/1999 Worldcast(UBS N.A. N.A. 53.20 14.7 N.M.
Capital) /
Groupe Valfond
8/1999 Investor Group / N.A. N.A. 52.43 249.5 N.M.
Nortel Inversora SA
7/1999 Total SA / N.A. N.A. 563.18 (1.9) N.M.
Petrofina SA
7/1999 Viacom Inc(Natl 9.00 0.0 9.75 8.3 8.3
Amusements) /
Spelling
Entertainment Group
6/1999 Roche Holding AG / 82.50 (5.0) 82.50 (5.0) N.M.
Genentech Inc
5/1999 Global TeleSystems N.A. N.A. 210.44 5.7 N.M.
Group Inc /
Omnicom
4/1999 Endesa SA / 13.65 2.4 13.66 2.5 N.M.
Cia Sevillana de
Electricidad
4/1999 Endesa SA / 41.42 7.0 41.43 7.0 N.M.
Electra de Viesgo
SA(Endesa)
4/1999 Endesa SA / 26.26 7.0 26.27 7.0 N.M.
Empresa Nacnl
Hidroelec Ribago
4/1999 Cie de Saint-Gobain N.A. N.A. 111.40 22.9 N.M.
SA /
Poliet SA
2/1999 Affiliated Computer N.A. N.A. 19.00 17.1 N.M.
Services /
BRC Holdings Inc
12/1998 Allianz AG / N.A. N.A. 1.37 3.6 N.M.
MMI Ltd(Allianz AG)
12/1998 Investor Group / N.A. N.A. 7.95 19.0 N.M.
Samancor Ltd
12/1998 Disco/Ahold N.A. N.A. 7.00 34.1 N.M.
International /
Disco SA
(a) Aggregate consideration offer for both ordinary shares and preference
shares. Offered $10.77 per preference share
Comparison of Selected Buyouts of Public Majority [Goldman Sachs LOGO]
Shareholders
Stock Initial Inside Consideration Aggregate
Price One 52 Week Premium Ownership Type Consideration For
Acquiring Company/ Day Prior Date High Prior Over 52 Before the Amount Acquired
Date Acquired Company to Ann. of Ann. to Ann. Week High Transaction (000's)
12/1998 Allianz AG / 13.25 10/7/1998 17.19 N.A. 86.8 Cash 100,000
AGF Union-Fenix(Assurance Gen)
12/1998 Prince of Liechtenstein / 1,053.78 10/28/1998 N.A. N.A. 75.0 Cash 951,100
Liechtenstein Global Trust
12/1998 Allmerica Financial Corp 27.56 10/27/1998 34.94 (17.0) 81.8 Cash 212,400
Citizens Corp(Hanover Ins Co)
10/1998 Dow AgroSciences/ 19.75 4/30/1998 29.25 (29.9) 68.6 Cash 411,600
Mycogen Corp
9/1998 NV Koninklijke KNP BT/ 10.38 1/22/1998 12.33 (14.8) 70.0 Cash 138,900
BT Office Products
8/1998 Petrofina SA/ 50.13 2/25/1997 55.50 8.1 85.4 Cash 257,000
Fina Inc.
3/1998 Waste Management/ 13.00 6/20/1997 16.88 (11.1) 67.0 Cash 853,100
Wheelabrator Technologies
3/1998 Robert Johnson & Liberty Media/ 40.00 9/11/1997 40.00 20.0 89.0 Cash 130,460
BET Holdings
1/1998 Rheinmetall Berlin AG/ 10.32 9/29/1997 20.00 N.A. 53.5 Stock 278,100
Kolbenschmidt AG
11/1997 Telephone and Data Systems Inc./ 33.00 12/18/1993 36.88 N.A. 80.7 Stock 537,840
United States Cellular
11/1997 Enron Corp/ 30.25 5/14/1997 32.38 N.A. 52.0 Stock 428,017
Enron Global Power & Pipelines
12/1997 Orion Capital/ 32.50 9/18/1997 35.25 (3.5) 77.3 Cash 117,219
Guaranty National Corp
8/1997 Rhone-Poulenc/ 79.44 6/26/1997 80.88 13.7 68.0 Cash 434,000
Rhone-Poulenc Rorer Inc.
3/1997 Tembec Inc./ 7.00 3/4/1997 7.00 42.9 51.0 Stock 111,600
Spruce Falls
2/1997 Hoechst AG/ 266.21 12/10/1996 273.78 7.6 56.5 Cash 3,500,000
Roussel-Uclaf
9/1996 Chemed Corporation / 36.50 8/8/1996 41.50 (1.2) 54.9 Cash 93,600
Roto Rooter Inc.
8/1996 Investor Group/ 2.90 7/1/1996 3.40 (30.0) 51.0 Cash 137,200
Macallan-Glenlivet
Initial Premium Final Premium Percent
Acquiring Company/ Initial Bid Over Market Final Bid Over Market Increase
Date Acquired Company Per Share Price Per Share Price in Offer
12/1998 Allianz AG / N.A. N.A. 13.25 (0.0) N.M.
AGF Union-Fenix(Assurance Gen)
12/1998 Prince of Liechtenstein / N.A. N.A. 1,261.57 19.7 N.M.
Liechtenstein Global Trust
12/1998 Allmerica Financial Corp / 29.00 5.2 33.25 20.6 14.7
Citizens Corp(Hanover Ins Co)
10/1998 Dow AgroSciences/ 20.50 3.8 28.00 41.8 36.6
Mycogen Corp
9/1998 NV Koninklijke KNP BT/ 10.50 1.2 13.75 32.5 31.0
BT Office Products
8/1998 Petrofina SA/ 60.00 19.7 60.00 19.7 0.0
Fina Inc.
3/1998 Waste Management/ 15.00 15.4 16.50 27.0 10.0
Wheelabrator Technologies
3/1998 Robert Johnson & Liberty Media/ 48.00 20.0 63.00 57.5 31.3
BET Holdings
1/1998 Rheinmetall Berlin AG/ N.A. N.A. 10.32 0.0 N.M.
Kolbenschmidt AG
11/1997 Telephone and Data Systems Inc./ N.A. N.A 33.00 0.0 N.M.
United States Cellular
11/1997 Enron Corp/ N.A. N.A. 32.00 5.8 N.M.
Enron Global Power & Pipelines
12/1997 Orion Capital/ 34.00 4.6 36.00 10.8 5.9
Guaranty National Corp
8/1997 Rhone-Poulenc/ 92.00 15.8 97.00 22.1 5.4
Rhone-Poulenc Rorer Inc.
3/1997 Tembec Inc./ N.A. N.A. 10.00 42.9 N.M.
Spruce Falls
2/1997 Hoechst AG/ N.A. N.A. 294.53 10.6 N.M.
Roussel-Uclaf
9/1996 Chemed Corporation / 41.00 12.3 41.00 12.3 0.0
Roto Rooter Inc.
8/1996 Investor Group/ N.A. N.A. 2.38 (13.0) N.M.
Macallan-Glenlivet
(a) Aggregate consideration offer for both ordinary shares and preference
shares. Offered $10.77 per preference share.
Comparison of Selected Buyouts of Public Majority [Goldman Sachs LOGO]
Shareholders
Stock Initial Inside Consideration
Price One 52 Week Premium Ownership Type
Acquiring Company/ Day Prior Date High Prior Over 52 Before the
Date Acquired Company to Ann. of Ann. to Ann. Week High Transaction
1/1996 Berkshire Hathaway Inc./ 55.75 8/25/1995 68.63 N.A. 52.4 Cash
GEICO Corp (Berkshire Hathaway)
12/1995 COBE Laboratories/ 15.75 7/14/1995 19.38 (7.1) 53.0 Cash
REN-Corp-USA (COBE Labs)
12/1995 BIC SA/ 35.75 5/19/1995 38.88 (6.1) 78.0 Cash
Bic Corp (BIC SA)
10/1995 McCaw Cellular/ 109.88 4/7/1995 140.50 (9.3) 52.0 Cash
LIN Broadcasting (McCaw Cellular)
9/1995 PacifiCorp/ 24.25 11/2/1994 29.50 (5.1) 86.6 Cash
Pacific Telecom (PacifiCorp)
6/1995 Club Mediterranee SA/ 22.63 4/5/1995 26.00 10.0 70.8 Cash
Club Med
5/1995 GTE Corp/ 17.75 9/8/1994 21.25 5.9 90.0 Cash
Contel Cellular Inc.
3/1995 Proventus AB/ 3.70 12/15/1994 4.29 N.A. 78.2 Cash
Aritmos AB
12/1994 Ogden Corp./ 17.38 6/6/1994 24.25 (29.2) 84.2 Stock
Ogden Services
9/1994 EW Scripps Co./ 78.50 2/17/1994 86.00 0.7 86.0 Stock
Scripps Howard Broadcasting
4/1994 Medco Containment Services/ 25.75 10/13/1993 36.50 (25.3) 54.2 Cash
Medical Marketing Group
10/1993 Torchmark/ 26.88 2/22/1993 30.25 0.8 83.0 Cash
United Investors Management
5/1993 Rust International Inc./ 17.88 11/13/1992 23.88 (25.1) 56.0 Cash/ Stock
Brand Cos Inc.
3/1992 W.R.9Grace & Company/ 15.25 3/2/1992 N.A. N.A. 83.4 Cash
Grace Energy Corporation
5/1992 Unocal Corp./ 9.88 2/24/1992 12.00 (9.8) 96.0 Stock
Unocal Exploration Corp.
12/1991 Siemens AG/ 120.62 10/21/1991 N.A. N.A. 78.0 Cash/ Stock
Siemens Nixdorf Information Systems
12/1991 Tele-Communications Inc./ 13.50 5/1/1991 16.50 (20.4) 57.2 Cash/ Stock
United Artists Entertainment Co.
Aggregate
Consideration For Initial Premium Final Premium Percent
Acquiring Company/ Amount Acquired Initial Bid Over Market Final Bid Over Market Increase
Date Acquired Company (000's) Per Share Price Per Share Price in Offer
1/1996 Berkshire Hathaway Inc./ 2,347,000 N.A. N.A. 70.00 25.6 N.M.
GEICO Corp (Berkshire Hathaway)
12/1995 COBE Laboratories/ 177,700 18.00 14.3 20.00 27.0 11.1
REN-Corp-USA (COBE Labs)
12/1995 BIC SA/ 212,600 36.50 2.1 40.50 13.3 11.0
Bic Corp (BIC SA)
10/1995 McCaw Cellular/ 3,323,400 127.50 16.0 129.90 18.2 1.9
LIN Broadcasting (McCaw Cellular)
9/1995 PacifiCorp/ 159,000 28.00 15.5 30.00 23.7 7.1
Pacific Telecom (PacifiCorp)
6/1995 Club Mediterranee SA/ 135,600 26.50 17.1 32.00 41.4 21.9
Club Med
5/1995 GTE Corp/ 254,300 22.50 26.8 25.50 43.7 13.3
Contel Cellular Inc.
3/1995 Proventus AB/ 141,300 N.A. N.A. 4.38 18.4 N.M.
Aritmos AB
12/1994 Ogden Corp./ 110,250 0.78 (1.3) 0.84 6.3 7.7
Ogden Services
9/1994 EW Scripps Co./ 115,920 3.00 10.4 3.45 26.9 15.0
Scripps Howard Broadcasting
4/1994 Medco Containment Services/ 122,510 27.25 5.8 27.75 7.8 1.8
Medical Marketing Group
10/1993 Torchmark/ 216,591 30.50 13.5 31.25 16.3 2.5
United Investors Management
5/1993 Rust International Inc./ 185,000 17.88 0.0 18.75 4.9 4.9
Brand Cos Inc.
3/1992 W.R.9Grace & Company/ 77,300 16.50 8.2 19.00 24.6 15.2
Grace Energy Corporation
5/1992 Unocal Corp./ 117,500 0.50 9.5 0.54 18.3 8.0
Unocal Exploration Corp. shares shares
12/1991 Siemens AG/ 1,000,000 147.52 22.3 147.52 22.3 0.0
Siemens Nixdorf Information Systems
12/1991 Tele-Communications Inc./ 1,189,000 0.95 (2.7) 1.02 3.6 6.5
United Artists Entertainment Co. shares shares
(a) Aggregate consideration offer for both ordinary shares and preference
shares. Offered $10.77 per preference share.
Comparison of Selected Buyouts of Public Majority [Goldman Sachs LOGO]
Shareholders
Stock Initial Inside Consideration Aggregate
Price One 52 Week Premium Ownership Type Consideration For
Acquiring Company/ Day Prior Date High Prior Over 52 Before the Amount Acquired
Date Acquired Company to Ann. of Ann. to Ann. Week High Transaction (000's)
4/1991 Murphy Oil Corp/ 16.63 1/3/1991 22.63 (24.8) 61.0 Stock 391,800
Ocean Drilling & Exploration
3/1991 BHP Holdings/ 33.75 2/6/1991 44.50 (10.1) 50.1 Cash 530,000
Hamilton Oil Corp.
11/1990 Freeport-McMoRan Inc./ 8.00 7/31/1990 11.13 (5.7) 81.5 Stock 239,161
Freeport-McMoRan Oil & Gas
10/1990 Renault Vehicules Industrial/ 5.25 7/6/1990 21.13 (71.6) 60.0 Cash 103,145
Mack Trucks Inc.
8/1990 Imetal S.A./ 11.50 1/24/1990 16.00 (3.1) 55.6 Cash 781,571
Copperweld Corp. Steel
8/1990 American Express Company/ 14.50 3/2/1990 N.A. N.A. 61.0 Stock 360,000
Shearson Lehman Brothers
6/1990 Esselte A.B./ 41.83 10/3/1989 38.00 14.5 78.5 Cash 219,298
Esselte Business Systems, Inc.
5/1990 Montedison S.p.A./ 31.12 N.A. 32.13 15.2 71.3 Cash 465,904
Erbamont
1/1990 Dow Jones & Co. Inc./ 15.13 9/21/1989 16.38 9.8 66.2 Cash 657,394
Telerate, Inc.
1/1990 Montedison S.p.A./ 44.13 7/31/1989 46.00 6.5 81.0 Cash 653,811
HIMONT Inc.
1/1990 Tele-Communications Inc./ 27.00 5/24/1989 24.00 32.3 75.0 Cash 209,625
WestMarc Communications
12/1989 General Accident Fire Life/ 0.28 6/16/1989 1.38 N.A. 51.0 Cash 175,000
NZI Corp. Ltd.
11/1989 Primerica Corporation/ 17.88 6/9/1989 21.25 (5.9) 70.8 Stock 453,000
The A.L. Williams Corporation
11/1989 Mayfair Acquisition Corp/ 17.25 4/3/1989 25.25 (6.9) 71.0 Cash 193,600
Mayfair Super Markets, Inc.
8/1989 The Henley Group, Inc./ 19.25 6/8/1989 21.38 (4.1) 80.2 Cash 119,801
Fisher Scientific Group, Inc.
6/1989 Zayre Corp./ 26.38 12/5/1989 27.13 0.3 83.0 Stock 414,000
The TJX Companies, Inc.
Number of
entries
----------------------------------------------------------------------------------------------------------------------
Mean (4.0)% 71.2% 84.0
Median (3.8) 73.2
High 44.7 98.7
Low (71.6) 50.1
----------------------------------------------------------------------------------------------------------------------
Initial Premium Final Premium Percent
Acquiring Company/ Initial Bid Over Market Final Bid Over Market Increase
Date Acquired Company Per Share Price Per Share Price in Offer
4/1991 Murphy Oil Corp/ 0.50 2.3 0.55 12.5 0.1
Ocean Drilling & Exploration shares shares
3/1991 BHP Holdings/ 40.00 18.5 40.00 18.5 0.0
Hamilton Oil Corp.
11/1990 Freeport-McMoRan Inc./ 0.27-0.33 31.2 0.31 37.5 4.8
Freeport-McMoRan Oil & Gas shares shares
10/1990 Renault Vehicules Industrial/ 6.00 14.3 6.25 19.1 4.2
Mack Trucks Inc.
8/1990 Imetal S.A./ 15.50 34.6 17.00 47.8 9.7
Copperweld Corp. Steel
8/1990 American Express Company/ 0.43 0.1 0.48 12.8 12.7
Shearson Lehman Brothers
6/1990 Esselte A.B./ 43.50 4.0 48.06 14.9 10.5
Esselte Business Systems, Inc.
5/1990 Montedison S.p.A./ 35.00 18.9 37.00 18.9 0.0
Erbamont
1/1990 Dow Jones & Co. Inc./ 18.00 19.0 21.00 38.8 16.7
Telerate, Inc.
1/1990 Montedison S.p.A./ 47.00 11.1 51.00 15.6 4.1
HIMONT Inc.
1/1990 Tele-Communications Inc./ 31.75 17.5 32.25 19.4 1.6
WestMarc Communications
12/1989 General Accident Fire Life/ N.A. N.A. 0.37 32.1 N.M.
NZI Corp. Ltd.
11/1989 Primerica Corporation/ 0.80 11.7 0.82 33.4 19.4
The A.L. Williams Corporation shares shares
11/1989 Mayfair Acquisition Corp/ 23.50 36.2 24.70 43.2 5.1
Mayfair Super Markets, Inc.
8/1989 The Henley Group, Inc./ 20.50 23.3 22.25 33.8 8.5
Fisher Scientific Group, Inc.
6/1989 Zayre Corp./ 1.35 32.2 1.45 42.0 0.1
The TJX Companies, Inc. shares shares
---------------------------------------------------------------------------------------------------------
Mean 16.5% 24.5% 8.1%
Median 15.4 19.6 5.9
High 88.9 249.5 36.6
Low (5.0) (13.0) (0.1)
---------------------------------------------------------------------------------------------------------
(a) Aggregate consideration offer for both ordinary shares and preference
shares. Offered $10.77 per preference share.