Development

I just received a fifty page "expert" report about PaineWebber and ECT
Securities over Ralph Hellmold's signature. The report is totally
argumentative and was obviously written by lawyers and not by Hellmold.

This is an unfortunate development for one reason. When we make Farallon a
settlement offer in a day or so, they may well believe that it came in
reaction to this report. I will try to disabuse them of that, but I may or
may not be successful.

I'll fax you the report.

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