Cooper Industries

Target price: $60 a share Book Value 51.25

Low price: $53 walk-away

As the merger takes place and even before the price of the stock will increase plus the price of value the stock after the merger will should increase in value so we are taking the synergy factor into or calculation. They stand to make a health amount of profits after the merger so we believe that the stock is worth more

Strong point

Family dominated management owns 20% of outstanding shown one of the largest domestic manufactures of

1. Hand tools leader in its two main product areas

2. Holds a 50% share of $50 million market for files and raps

3. Very strong brand name

4. 9% of $200 million market and Sears Roebuck Disston Ice had a larger market shares

3. Three most important objectives:

1. To make sure that Nichoson management

Kept management control and running of the everyday operation. As a indepent company under the Cooper Umbrella.

2. To make sure that a fair valuation of our stock price for the shareholders also talking into consideration the synergy that would be created by the (2) two firms coming together.

3. Any sell of the company must also have the approval or some influence of the Nichoson managements. That would reason that the shareholder interests are protected