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  "documentTitle": "Pershing Square | Activist Presentation Deck | 58 slides",
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  "authorName": "Pershing Square Capital Management",
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  "presentationDate": "2006-01-01 00:00:00",
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  "pageNumber": 51,
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  "notes": "The slide outlines a financial restructuring plan involving a $1.3bn note, an IPO, and subsequent share buybacks.",
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      "kind": "diagram",
      "text": "Step 1: McOpCo dividends a $1.3bn Note to McDonald's (parent)",
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      "text": "Step 3: Share Repurchases using Cash on Hand and IPO Proceeds",
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      "text": "Step 2: IPO of McOpCo",
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      "text": "McOpCo declares and pays a dividend to McDonald's (parent) in the form of a Note in an amount equal to the anticipated proceeds from an initial public offering of McOpCo. For illustrative purposes, we assume the Note is for $1.3bn, or 20% of the equity market value of McOpCo (assumed to be $6.6bn)",
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      "text": "McOpCo undertakes the IPO and uses the proceeds to repay the dividend note. Any tax cost for the IPO would be the amount by which the IPO distribution exceeded McDonald's basis in the McOpCo stock multiplied by McDonald's corporate and state/local tax rate. Assuming a $1.3bn of IPO distribution, there would be no tax cost associated with the IPO. Assume a $1.65 billion of tax basis",
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      "text": "No incremental leverage issued. PF McDonald's repurchases approximately 7% of the fully diluted share base using Excess cash on hand. After tax proceeds of IPO",
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