Perry Capital possess shares in the King and, to facilitate the consent of the amalgamation, acquires shares in Mylan, whilst hedging out its economic exposure to the Mylan's share price utilizing derivatives. The price at which Mylan proposes to unify with King is generous to King investors, but the amalgamation does not look likely to be approved by Mylan shareholders, who must vote upon it. If Perry can swing the voting in favor of the deal, it will gain handsomely on its King shares without confronting any similar losses on its Mylan holdings since those are hedged. Another investor in Mylan, Carl Icahn, sued Perry for alleged vote buying and fought the price.
Mylan Laboratories' Proposed Merger with King Pharmaceutical Case Study Solution
PUBLICATION DATE: February 04, 2014 PRODUCT #: 214078-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
<iframe width="640" height="360" src="https://www.youtube.com/embed/_Iz0tCikZdU" frameborder="0" allowfullscreen></iframe>
Related Case Solutions & Analyses:
What Can a Mosquito Do to an Elephant (C)
Target Micronics in China: Disarray in Finance
Raising Revenues or Raising Hackles: Radical Public Sector Reform in Perus National Tax Adminstration Superintendency
Diamond Chemicals Public Limited Corporation
Bed Bath & Beyond: The Capital Structure Decision
Bed Bath and beyond BBBY
Dows Bid For Rohm And Haas
BTS Skytrain Carve-Out: The Return of the Infrastructure Trust Fund
Goldman Sachs (B): Determining the Potential of Social Impact Bonds
Akhuwat: Fighting Poverty with Interest-Free Microfinance
