It is February 2009 and you work as an analyst in an investment banking firm specializing in the pharmaceutical industry, and your currently assignment is as a buy-side analyst for Merck. There have been rumors about Merck's (MRK) desire to merge with Schering-Plough (SGP) in response to the industry merger wave. Your challenging assignment is to analyze the potential combination of Merck and Schering-Plough. Specifically, you are to determine whether the merger is feasible and the key deal design features. After talking with your manager, you decide that the merger synergies are expected to be a 5% reduction in the combined operating costs in SG