Mylan Lab's Proposed Merger with King Pharmaceuticals

Is this a merger that makes economic, strategic and financial sense? Discuss

your reasoning. All of this discussion should be qualitative, not quantitative.

Will this deal generate value? If so$,$ how much value do you estimate will be

created? Be clear about what you are assuming.

Is this a good deal for the shareholders of Mylan? On what basis do you make

that statement? What does the market think? If your view differs from the

market, explain the difference.

Is this a good deal for the shareholders of King? On what basis do you make

that statement? What does the market think? If your view differs from the

market, explain the difference.

Use the information contained in market price of King on the announcement day

to form an assessment of the probability of the merger being consummated.

Hint: King was trading at $10\mathrm{.}37$ before the announcement and went up to $12\mathrm{.}89$

on announcement day. You can assume that the price of Mylan at the end of the

announcement day reflects the post$-$merger value of a Mylan share.

What is Perry Capital trying to achieve and why? Discuss the various ways in

which they could structure their trade in order to achieve this end. $\{$Separate

point: In your view, should the SEC aim to prevent future similar trades? If so$,$

how and why?$\}$