Analyze the returns to Galenica and Relypsa before the tender offer was announced. Based on pre-bid price behavior, which of these companies was performing best? Were the stock prices moving closely together?
Analyze the stock market reaction to the announcement of the bid. Did the market believe that the tender offer was likely to succeed? Explain your logic and provide evidence. Did the market think this was a good deal for Relypsa stockholders? What about for Galenica stockholders?
Analyze the behavior of the two stock’s prices during the duration of the offer (the last day of trading was 8/31/2016). Does it seem like there was any uncertainty about whether the offer would be consummated successfully? Why?
Finally, is there any reason to think that the market thought better or worse of the deal after it was completed?
Feel free to use internet resources (e.g., Google) to learn more about these companies and this transaction.
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