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All these questions are related Pfizer Inc. and Biohaven Pharmaceutical Holding Company LTD acquisition. Please, use news and sec.gov1.Provide the basic details regarding the progression of the deal...

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All these questions are related Pfizer Inc. and Biohaven Pharmaceutical Holding Company LTD acquisition. Please, use news and sec.gov
1.Provide the basic details regarding the progression of the deal offer, intial offer, revisions, final offer and competing offers. This includes price and composition of the offer, i.e. cash vs. stock. (this should be explained in detail)
2. Identify at least two specific synergies from the transaction, provide a paragraph summary of the synergies identified. Include reference sources that provide detail regarding the identified synergies. This may include news articles or press releases by the acquirer or target.
3. Identify two alternate strategies to the transaction, i.e. focus on organic growth or merger/acquisition with an alternate firm. Include sources if possible such as news articles or a record of previous actions by the firms.
Answered 1 days After Oct 28, 2022

Solution

Prince answered on Oct 29 2022
51 Votes
Question 1
According to the news, on 10th May 2022, Pfizer Inc. (NYSE: PFE) and Biohaven Pharmaceutical Holding Company Ltd. (NYSE: BHVN) announced that they have entered into a definitive merger agreement. In accordance with the terms of agreement, Pfizer would pay $148.50 in cash for each share in Biohaven that it does not already hold. Pfizer is one of the Biohaven common shareholders who will also get 0.5 of a share in New Biohaven, a newly listed company that will continue to develop Biohaven's non-CGRP pipeline drugs. Both Biohaven's and Pfizer's boards of directors have unanimously endorsed the deal. Pfizer will pay the estimated $11.6 billion in cash that makes up the deal consideration. At closing, Pfizer will additionally pay Biohaven's third-party debt as well as the redemption of any shares of Biohaven's redeemable prefe
ed stock that are still outstanding. In comparison to Biohaven's volume-weighted average sale price of $111.70 for the three months preceding to the announcement of the deal, the $148.50 cash consideration indicates a premium of around 33%.
Pfizer intends to use its available funds to fund the proposed deal. The agreement is contingent on...
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