This paper discusses solution to the case study Rhone-Poulenc Rorer, Inc.

on merger of two
pharmaceutical major Rorer Group, Inc & Human Pharmaceutical Business of Rhone-Poulenc S.A. The
solution discusses in detail about the industry overview, pre-merger company overview, objective
behind the merger, about the merged company RPR, competitor analysis, overview on contingent value
rights including the advantages and risks, structure of the deal, analysis on derivative component of the
deal, the purpose and usefulness for the deal, valuation of CVR package with a binomial option tree
model, interval for CVR extension, valuation of CVR with monte carlo simulation, sensitivity analysis,
beneficiaries of the deal, deal evaluation on pre-merger and post-merger basis on qualitative basis,
evaluation of alternative derivative for the deal with emphasis on collar offer and earn-out investment,
analysis of actual outcome and final recommendation.

For detail solution please email to alkamurarkaa@gmail.com. Price is GBP 135.

Following is the index of the solution:

1. Introduction
2. Industry Overview
3. Pre-Merger Company Overviews
a. Rhône-Poulenc S.A. (RP)
b. Human Pharmaceutical Business (HPB)
c. Rorer Group, Inc. (Rorer)
4. Analysis of Motivation for Merger
5. Rhône-Poulenc Rorer (RPR)
6. Competition Analysis
7. Contingent Value Rights
a. Theoretical Background
i. Advantages
ii. Risks
8. Structure of the Deal
9. Derivative Component of the Deal
a. Purpose and Usefulness for the Deal
b. Valuation of CVR Package with a Binomial Tree
c. Interval for CVR Extension
d. Valuation of CVR Package with Monte Carlo Simulation
e. Robustness Checks
f. Sensitivity Analysis
g. Beneficiaries of the Deal
10. Qualitative Deal Evaluation
a. Pre-Merger
b. Post-Merger
11. Alternative Derivatives for the Deal
a. Collar Offer
b. Earn-out Instrument
12. Analysis of Actual Outcome
13. Conclusion