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CCS-67
AFFIDAVIT OF KEVIN P. COLLINS
COMMONWEALTH OF PENNSYLVANIA COUNTY OF PHILADELPHIA
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I, Kevin P. Collins, depose and say:
1 I am a Managing Director m charge of the valuation practice in the New York office of Houlihan Lokey Howard & Zukin Financial Advisors, Inc. ("Houlihan Lokey").
2. Houlihan Lokey is a major provider of specialized investment banking services, with a thirty-plus year history in the filed of business and securities valuation. Houlihan Lokey provides valuation services m a broad array of situations and for a wide range of transactions, both in type and size.
3. Houlihan Lokey's valuation opinions are used regularly in a number of contexts including: shareholder liquidity alternatives; private company valuations; M&A; restructurings and reorganizations; ESOP's; corporate redemptions; management stock plans; estate, gift and income planning.
4. I personally have been involved in business and securities valuation for the past fourteen years. I have provided financial advisory services in a range of transactions including mergers, acquisitions, spin-offs, sales, repurchases of minority and controlling interest blocks, and other corporate finance activities. I have also provided valuations for corporate tax and gift and estate tax purposes, ESOPs, and dispute analysis.
5. I earned a B.S. m business administration from the State University of New York at Albany in 1979, and an M.B.A. from the University of Rochester in 1982. Prior to joining Houlihan Lokey, I was a corporate lending officer with Security Pacific National Bank (1984 1987) and prior to that I was employed by AmeriTrust Corporation (1982-1984).
6. I am the author of articles in my field, including "Avoid Fraudulent Conveyance Suits" by Kevin Collins and Warren Hirschhom, Corporate Cashflow June 1996; and "Planning a Leveraged Transaction? Make Sure You Can Survive the Sale" by Kevin Collins and Warren Hirschhom, Directorship March 1996.
7. I have been qualified as an expert witness in financial matters before state insurance commissioners (Maine), in federal district court (Western District of Michigan), and in bankruptcy court (District of Delaware and District of Connecticut).
8. Houlihan Lokey has been retained by Crown Cork & Seal Co., Inc. ("Crown Cork") to prepare a written report expressing our conclusion regarding the fair market value of the total assets of Mundet Cork Corporation ("Mundet" or the "Company") as of February 10, 1966 (the "Valuation Date"). Mundet was merged into Crown Cork on February 10,1966.
9. In connection with this project, I or my staff under my direction, reviewed numerous historical financial documents, including a file of material compiled by the Federal Trade Commission concerning that merger. Documents reviewed include the Company's audited and unaudited financial statements for the fiscal years ended December 31, 1959 through 1965; the stock acquisition agreement dated, as of November 7,1963, by and between the Co-executors of the Estate of Joseph J. Mundet, Deceased and Crown Cork; the certificate of merger of Mundet Cork Corporation into Crown Cork & Seal Company, Inc., dated as of January 4, 1966 and filed m New York Department of State on February 10, 1966; Crown Cork's annual reports for the fiscal year ending December 31, 1963 through 1966; documents concerning the industry, as well as the economic and competitive environment in which the Company competed; certain publicly available financial data for certain companies that we deem comparable to the Company.
10. Such documents are the type of documents upon which an expert in valuation would typically and reasonably rely in opining on the valuation of a company or its assets.
11. We completed an independent valuation of Mundet, using standard and reasonable methodology, and in my opinion, which I hold to a reasonable degree of professional certainty, > the fair market value of Mundet was in the range of $11 million to $12 million as of February 10,1966.
12. The basis for this conclusion and the details of the valuation methodologies employed I are set forth in the Report attached to this affidavit as Exhibit A.
13. We also applied to that valuation an adjustment by the rate equal to the prime rate for each calendar year since the merger, plus 1%, not compounded. The adjusted annual figures are listed in the attached Report. As of December 31, 2001, the adjustment produces a figure in the range of $50 million to $55 million.
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14. I understand that this affidavit and the attached Report may be used by Crown in connection with ongoing litigation, specifically m connection with enforcement of 15 Pa.C.S.A 1929.1 et seq.
Sworn to before me this day of
January, 2002.
KEVIN P. COLLINS on behalf of HOULIHAN LOKEY HOWARD & ZUKEN FINANCIAL ADVISORS, INC.
Notary Public, State of New York
No. 01S16021470
Qualified in Queens County
Commission Expires
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IN RE: ASBESTOS LITIGATION Motion for Summary Judgment
Of Crown Cork & Seal Company, Inc.
: : : :
COURT OF COMMON PLEAS PHILADELPHIA COUNTY
NO. 001
CERTIFICATION OF SERVICE
I, JOEL D. CANEY, hereby certify that on
^, 2002,1 served a copy of
the foregoing Motion for Summary Judgment to all counsel of record in the cases stated in Exhibit "A" attached to the Motion as more fully described in the attached Exhibit "F\ by 1st class mail. United States Postal Service, postage prepaid, after having filed the Motion and hand delivering the original and one copy to Court Administrator Mary McGovern.
Dated:
7~ , 2002