Mr. Frank Daly:

PIMCO was the first company to indicate that it might have an interest in buying the portfolio and was fully engaged in the process and involved in the data room. Most of PIMCO's engagement with us was on the commercial side. In the data room, PIMCO staff would have been asking questions and, presumably, trying to put their own price on the portfolio. PIMCO's compliance department came to us and indicated that, as part of the arrangements it had made with advisers, a success fee, or a part thereof, was to be payable to Mr. Frank Cushnahan, who was a former member of our advisory committee. On 10 March, PIMCO came to us to ask whether it would be a problem for us, which was putting it mildly. We had a board meeting on 11 March, at which we decided it certainly was a problem. We told our executives to return to PIMCO and indicate that, in the circumstances, we did not believe it could continue in the process and either they should leave the process or we would take steps to ensure they were not entertained any further. This was the process, and PIMCO exited on 12 March. It did not exit for commercial reasons. It was interested in the portfolio.