IN RE HAMILTON TAFT & CO.

No. 95-17058.

114 F.3d 991 (1997)

In re HAMILTON TAFT & COMPANY, Debtor. Frederick S. WYLE, Trustee of Hamilton Taft & Company, Plaintiff-Appellant, v. HOWARD, WEIL, LABOUISSE, FREIDRICHS INC.; Howard Weil Financial Corporation; Legg Mason Inc., Defendants-Appellees.

United States Court of Appeals, Ninth Circuit.

Decided June 11, 1997.


Attorney(s) appearing for the Case

L.J. Chris Martiniak, Feldman, Waldman & Kline, San Francisco, CA, for plaintiff-appellant.

Robert L. Eisenbach III, Cooley, Godward, Castro, Huddleson & Tatum, San Francisco, CA, and Thomas K. Potter, III, Jones, Walker, Waechter, Poitevent, Carrere, & Denegre, New Orleans, LA, for defendants-appellees.

Jeffrey L. Schwartz, Hahn & Hessen, New York City, for amicus.

Before: NORRIS and KOZINSKI, Circuit Judges, and MOLLOY, District Judge.


WILLIAM A. NORRIS, Circuit Judge.

In late 1987, MaxPharma, Incorporated had an option to buy Hamilton Taft & Company's stock from its then-owner, Connecticut General Corporation ("CIGNA"). MaxPharma was unable to arrange financing for the stock purchase using stock as collateral, but Howard Weil Financial Corporation offered to finance the stock purchase using a reverse repurchase (or "repo") of a treasury bill (the "T-bill"), and the parties agreed to finance...

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