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DewDiligence

02/11/16 2:59 PM

#199667 RE: jbog #199661

Re: MYL-Meda

…the Street isn't too happy about what Mylan is paying for Meda.

The 92% premium is high, but Meda is an excellent fit for MYL, especially in emerging markets (#msg-120456955).

Some investors have evidently succumbed to the flawed logic promulgated by Bernstein’s Ronny Gal: that MYL could have accomplished much more for shareholders by applying the $9.9M deal value entirely to share buybacks. The logic flaw in this notion is that MYL would be badly over-leveraged if it increased net debt by $9.9B without any corresponding increase in operating cash flow to service that debt.