Hybritech Incorporated (B)

17 Pages Posted: 21 Oct 2008

See all articles by Robert F. Bruner

Robert F. Bruner

University of Virginia - Darden School of Business

Casey Opitz

University of Virginia - Darden School of Business

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Abstract

This case is meant to follow the negotiation cases: "Hybritech, Incorporated (A)" (UVA-F-0792) and "Eli Lilly and Company" (UVA-F-0794). The case deals with the financial structure of the acquisition and requires students to analyze the value of cash payments versus convertible notes and the value of Lilly warrants and contingent-payment units to old Hybritech stockholders based on future Hybritech performance. The complicated proposed payment stems from differing expectations about Hybritech's performance. Students must determine whether the structure is fair to both Lilly and Hybritech shareholders.

Keywords: acquisitions, financial analysis, mergers, negotiation, security analysis, valuation

Suggested Citation

Bruner, Robert F. and Opitz, Casey, Hybritech Incorporated (B). Available at SSRN: https://ssrn.com/abstract=1278837 or http://dx.doi.org/10.2139/ssrn.1278837

Robert F. Bruner (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-3823 (Phone)
434-924-0714 (Fax)

HOME PAGE: http://faculty.darden.edu/brunerb/

Casey Opitz

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

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