On the day Warren Buffett announced that Berkshire Hathaways subsidiary, Mid American Energy. would acquire PacifiCorp for $5.1 billion in cash and $4.3 billion in liabilities and preferred stock, Berkshire Hathaways Class A shares popped by 2.4%. The increase represented a $2.17 billion gain in Berkshire's market value of equity or market cap, on a day when the S&P composite index was virtually flat. What does this price action imply about the intrinsic value of PacifiCorp? (Before you answer, review Buffetts definition of intrinsic value at bottom of p. 7.)