EX-99.(C)(3) 3 d31935a1exv99wxcyx3y.htm SUMMARY OF INITIAL BIDS exv99wxcyx3y
 

Project Perseus—Summary of Initial Bids
                                                 
($ in millions, except per share data)
                    Implied   Implied        
                    Equity   Enterprise   Enterprise Value/2005E EBITDA    
Bidder   Bid   % Premium(1)   Value   Value   32.5(2)   34.1(3)   37.9(4)   Comments
*
    $12.50 — $14.00       16.5% — 30.5%       $264 — $302       $317 — $354     9.8x — 10.9x   9.3x — 10.4x   8.4x — 9.3x   Very excited about business and moving forward in the process. * has identified an undisclosed executive to run/advise the business.
 
                                                
*
    $12.05 — $14.00       12.3% — 30.5%       $253 — $302       $306 — $354     9.4x — 10.9x   9.0x — 10.4x   8.1x — 9.3x   Did not formally bid due to 13D filing regulations but discussed valuation with Bear Stearns. Thinks the business is worth 15—25% higher than their net cost of $11. 20, or a valuation of $12.90 to $14.00 per share. Alternatively, * said they believe the business is worth 8.5x — 9.5x EBITDA of $36 million, or $12.05 to $13.51 per share.
 
                                                
*
    $10.50 — $12.00       (2.2%) — 11.8%     $ 220 — $252     $ 273 — $305     8.4x — 9.4x   8.0x — 8.9x   7.2x — 8.0x   Interested in acquiring the entire company.
 
                                                
*
    $10.50 — $11.00       (2.2%) — 2.5%     $ 220 — $231     $ 273 — $283     8.4x — 8.7x   8.0x — 8.3x   7.2x — 7.5x   Interested in acquiring the entire company. The bid was approved by * committee when PEGS stock was $10.50. * intent is to have a market to a slight premium to market bid.
 
                                                
*
    $10.75       0.2%       $226       $278     8.6x   8.2x   7.3x   Interested in acquiring the entire company.
 
                                                
*
  Financial & Distribution Services                     *                 Interested in purchasing the Financial & Distribution Services segment for a value of *
 
  Distribution Services                     *                 Would also purchase Distribution Services only for *
 
                                                
*
                                              Highly interested in Distribution, Reservation and Financial Services. Would like to continue diligence on these businesses and receive a historical and projected P&L for these segments to determine bid level.
 
                                                
*
                                              Interested in Representation Services. Would like to continue diligence on Representation Services and receive a historical and projected P&L for this segment to determine bid level.
 
                                                
*
                                              Highly interested in purchasing Representation Services only. Would also consider partnering with a financial sponsor to purchase the whole business (would be a minority equity investor) in combination with a commercial relationship.
   
 
(1) Based on stock price of $10.73 on June 27, 2005.
(2) Management estimate.
(3) Management estimate excluding impact of PegasusCentral.
(4) Management estimate excluding impact of PegasusCentral and public company costs.
* Confidential Treatment Requested