1. Why do you believe that Teva chose to acquire the outstanding stock of Barr rather than selected assets? Explain your answer.
2. Mergers of businesses with operations in many countries must seek approval from a number of regulatory agencies. How might this affect the time between the signing of the agreement and the actual closing? How might the ability to realize synergy following the merger of the two businesses be affected by actions required by the regulatory authorities before granting their approval? Be specific.
3. What is the importance of the pre-closing covenants signed by both Teva and Barr?
4. What is the importance of the closing conditions in the merger agreement? What could happen if any of the closing conditions are breached (i.e., violated)?
5. Speculate as to why Teva offered Barr shareholders a combination of Teva stock and cash for each Barr share outstanding and why Barr was willing to accept a fixed share exchange ratio rather than some type of collar arrangement.

On December 23, 2008, Teva Pharmaceuticals Ltd. completed its acquisition of U.S.- based Barr Pharmaceuticals Inc. The merged businesses created a firm with a significant presence in 60 countries worldwide and about $14 billion in annual sales. Teva Pharmaceutical Industries Ltd. is headquartered in Israel and is among the top 20 pharmaceutical companies in the world. It also is the world’s leading generic pharmaceutical company. The firm develops, manufactures, and markets generic and human pharmaceutical ingredients called biologics, as well as animal health pharmaceutical products. Over 80% of Teva’s revenue is generated in North America and Europe.