BRN 481 Case #2: due 5/31/2017


On July 21, 2016, Galenica (VIFN) announced it planned to acquire Relypsa (RLYP) by offering $32/share for RLYP stock. The course web page has an Excel spreadsheet file (in ZIP format) BRN481Case217.ZIP that contains 662 trading days of stock returns for VIFN, RLYP, the CRSP value-weighted portfolio (Rmv), and the Swiss Market Index (SSMID) from September 22, 2014 through April 19, 2017. You should do this assignment in groups and prepare a concise report that explains your analysis and findings. Neat, coherent presentation of high-quality analysis is the goal of this assignment. Do not include lots of computer output (although you may copy small portions of output that include relevant statistics).

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.


A full-text version of this case assignment is available in Acrobat's portable data format (.pdf). The file is about 28K and can only be viewed (and printed) using a copy of Acrobat Reader. Click here to download this case assignment.


Click here to view a possible answer to this case.

Click here to download the Excel worksheet with the answer.


Click here to see the histogram showing the grades for this case.

A histogram showing the grades for this case is available in Acrobat's portable data format (.pdf). The file is about 4K and can only be viewed (and printed) using a copy of Acrobat Reader.

Click here to download this graph.


Return to BRN 481 Home Page


© Copyright 2001-2017, G. William Schwert

Last Updated on 5/18/2017