Mylan Lab’s Proposed Merger with King Pharmaceutical (Abridged) Harvard Case Solution & Analysis

Perry Capital purchases shares in Mylan, whilst hedging out its economic exposure to Mylan's share price using derivatives and, to facilitate acceptance of the merger, owns shares in King.

The cost at which Mylan proposes to merge with King is generous to King shareholders, but the merger doesn't look likely to be approved by Mylan shareholders, who must vote upon it. If the voting cans sway in favor of the price, it will gain on its King shares without confronting any corresponding losses on its Mylan holdings since those are hedged. Another investor in Mylan, Carl Icahn, opposed the bargain and sued Perry for alleged vote buying.

PUBLICATION DATE: January 14, 2009 PRODUCT #: 209097-PDF-ENG

This is just an excerpt. This case is about FINANCE & ACCOUNTING

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Mylan Lab’s Proposed Merger with King Pharmaceutical (Abridged)

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