Opinion ID: 1536001
Heading Depth: 1
Heading Rank: 4

Heading: Petitioners' Valuation

Text: At the December 1996 trial, the Petitioners' expert witness was David Clarke (Clarke). He testified that as of the Merger date the fair value of MGB common stock was $58,514,000, or $85 per share. In arriving at that conclusion, Clarke used three distinct methodologies to value MGB's two operating bank subsidiaries: the comparative publicly-traded company approach, yielding a $76.24 to $77.50 per share value; the discounted cash flow (DCF) method, yielding a $73.96 to $72.23 per share value; and, the comparative acquisitions approach, yielding an $85 per share value. In performing his analysis, Clarke added a control premium to the values of the two subsidiaries to reflect the value of MGB's controlling interest in those subsidiaries. He then added the value of MGB's remaining assets to his valuations of the two subsidiaries. Clarke arrived at an overall fair value of $85 per share for MGB. At the trial, the Petitioners also introduced evidence of what MGB's fair value would be if Sheshunoff's prior determination were revised as of the Merger date and if its minority discount were eliminated.