ASARCO LLC et al. v. Americas Mining Corporation

Defense counsel retained Cornerstone Research and Professor Craig Pirrong of the University of Houston to evaluate ASARCO’s allegation that it had not received a reasonably equivalent value for its interest in SPCC.

Defense counsel retained Cornerstone Research and Professor Craig Pirrong of the University of Houston to evaluate ASARCO’s allegation that it had not received a reasonably equivalent value for its interest in SPCC, a mining firm that was sold to Americas Mining Corporation, ASARCO’s corporate parent.

The court ruled that “ASARCO received reasonably equivalent value for the SPCC shares.”

Professor Pirrong analyzed the value of ASARCO’s interest in SPCC using both market price and a discounted cash flow (DCF) valuation. The DCF valuation included a detailed analysis of the behavior of commodity prices that substantially affected corporate value. Additionally, Professor Pirrong assessed the valuation of the consideration paid for the equity interest in SPCC, which included both cash and promissory notes.

The court ruled that “ASARCO received reasonably equivalent value for the SPCC shares.”