Fresenius Kabi Pharmaceuticals (APCVZ)

[anbu]

Change in the value of contingent value rights is included in the Adjusted EBITDA calculation. The CVR values for the Quarter ended Dec 31, 2009 is $0.30 and Mar 31, 2010 is $0.15. So change is -0.15 and $24.48 million is deducted from the EBITDA. Please refer page 29 in the last 10Q report.

As of now, the Adjusted EBITDA is approx $735 million. If the MM's can raise the PPS to $3.5, total value the CVR will be approx $560 million. So the Current Value of the Adjusted EBITDA + total values of the CVR will be more than $1.267 Billion (this is not including the Adjusted EBITDA for the next 3 quarters). If they can increase the value of the CVR to $3.5, we will be paid $6 per share. Am i missing anything in my assumptions? I feel something is not right.