M&a Mercury Case

Case II: Mercury Athletics

1. Is Mercury an appropriate target? Why or why not?

2. What would be the value of Mercury based on Comparable Company Analysis?

3. How would you analyze the possible synergies or other sources of value not included in Liedtke's base case assumptions?

Case III: Consolidated Rail Corporation

1. Why does CSX want to buy Conrail? Analyze the industry economics.

2. Analysis of CSX offer. Why did CSX make a two-tiered offer? Why is the transaction a mixture of cash and stock?

3. How much is Conrail worth (use comparable transactions and synergies valuation analysis)? How do you value the cost savings?

4. Analyze the economic rationale of the transaction and the takeover implications of the various anti-takeover provisions in the merger agreement.

ASSIGNMENTS FOLLOWING SESSIONS

May 8

• Reading 2011 M&A market document to comment in class

• Choose a recent news on M&A activity to comment on class

• Cintra/Telefónica Móviles/Iberdrola assignment

May 10

• Case "Upjohn/Pharmacia Merger"

• Choose a recent news on M&A activity to comment on class

• Optional: suggested reading "Designing the optimal sell side process"

• Bring the final assignment topic proposal

DIVESTITURE Assignment

Research on one of the following divestiture transactions: