Perry Capital owns shares of the king and to facilitate the approval of the merger, to buy shares Mylan, while hedging their economic effects of Mylan's stock price using derivatives. The price at which Mylan proposes to merge with the king is generous to the king of shareholders, but the merger does not seem to be approved by shareholders of Mylan, which must vote on it. If Perry can swing the vote in favor of the deal, he will be nicely on its shares king without facing any corresponding loss Mylan holdings as those hedges. Carl Icahn, the other shareholder in Mylan, opposes the deal and sued Perry on charges of vote-buying. "Hide
by Lucy White Source: Harvard Business School 8 pages. Publication Date: January 14, 2009. Prod. #: 209097-PDF-ENG
Related Case Solutions & Analyses:
The Great Recession 2007-2010: Causes and Consequences
Hong Kong Dragon Airlines Limited (A): Determining the Cost of Capital
Jive Software
Purinex Inc.
Birth of Modern Macroeconomic Policy: Sweden and the Great Depression
Chinas Telecommunications Sector
Arcor: Global Strategy and Local Turbulence
The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Integration Planning
2001 Crisis in Argentina: An IMF-Sponsored Default (A)
Selkirk Group in Asia
