Thanks for sending over the schedul

Thanks for sending over the schedule detailing the components of the $85m. Now that we have the back-up in hand, I can only echo our initial gut reaction.

In our view, the appropriate place to treat potential debt adjustments is in the purchase agreement's Indebtedness definition (linking to a schedule if required), so that any outstanding balances on agreed items act as deductions at closing - rather than as reductions of the headline price. CGE's binding offer of December 8th did not indicate any particular deductions. CGE's SAPA draft delivered on December 2nd indicated only Reglan and litigation liabilities as Indebtedness deductions - and the Reglan reserve was in fact already planned to be absorbed by the sellers through its inclusion in the working capital adjustment to the extent not already paid out at closing.

Pensions ($40m): this item has been disclosed all the way back to the CIM and throughout the data room and the due diligence process pre-December 8. Other bidders gave us full clarity in their offers as to its treatment (as debt or not) in their offers. This was not a confirmatory d.d. discovery. As a result, we consider its introduction at this point to be a re-trade and a price chip.

MERP ($11m): similar to pensions, this has been disclosed through due diligence pre-December 8, and was not flagged in CGE's binding offer or the SAPA where there was ample opportunity to do so. As a result, we also consider this deduction to be a re-trade and a price chip.

Reglan reserve ($22.5m): this item may be paid before closing, and furthermore was already proposed on our side to be picked up through the working capital adjustment if not yet paid. As a result, we consider this deduction from headline price to be a double-dip and a price chip.

Tax items ($4m): responsibility for pre- and post-closing taxes is already fully addressed in section 9 of the SAPA. As a result, we consider this to be a pure price chip.

Other items (c.$7m): none of these items are individually material to a >$1 billion transaction, and furthermore your side gives no credit to the potential for several similarly sized positive items to come in the future (inbound settlements and deposit releases). As a result, we also consider this to be a pure price chip.

Additional price reduction ($45m): your side has linked this to (i) certain ex-US IP that is used by Meda and was never on offer in this transaction perimeter; (ii) various unquantified contingent liabilities that we do not believe are material; and (iii) the perceived benefit of reducing the indemnity cap from 10% (CGE's position) or 5% (Meda's position), to 2%. Clearly we don't agree with the principle, and the magnitude (3.5% of purchase price) cannot be attractive as a trade, given that it exceeds the reduction from our position on the cap (5% to 2%)... not to mention that our position also had a 2% deductible. So this is also a clear price chip from our point of view.

In summary, this aggregates to an enormous price chip (10.2%) that comes at the [in theory] late stages of a deal, and none of it relates to material relevant items that weren't already known or addressed at the time of the Dec 8 binding offer and the Dec 2 SAPA draft submission.

I think you can imagine our client is enormously turned off by this approach and we struggle to see how to move forward from here, particularly when taking into account the significant hurdles that remain in the most recent SAPA draft, and the long/complex sign-to-close process inherent in a CGE deal.

結果 (中文) 2:

感谢您发送过时间表，详细的$85米的组件。现在，我们有备份在手，我也只能随声附和我们最初的本能反应。我们认为，适当的地方治疗潜在的债务调整是在购买协议的负债定义（链接到一个时间表如果需要的话），从而使商定的项目任何未清余额作为扣除在交易结束-而不是作为标题价格的降低。专家咨询小组结合12月8日的报价并没有表明任何特定的扣除。发表在12月2日CGE的SAPA草案表示只Reglan和诉讼负债负债扣除-与Reglan储备在已经计划通过其纳入营运资本调整尚未在交易结束时支付的范围内被吸收的卖家事实。退休金（$40米）：该项目已被披露过的所有的方式回到了CIM和整个数据机房和Pre-月的尽职调查过程8.其他投标人给了我们完全清楚其报价为它的治疗（如债务或没有）在他们的提议。这不是一个确定的DD发现。因此，我们认为其介绍，在这一点上是一个重新的贸易和价格的芯片。MERP（$11 米）：类似养老金，这是通过尽职调查前12月8日披露，并且没有标记在专家咨询小组约束力的要约，或者有充分的机会，这样做的SAPA。这样一来，我们也认为这个推论是一个重新的贸易和价格的芯片。Reglan 储备（$22.5米）：这个项目可能会闭幕前就已经提出了我们的身边被拾起通过工作来支付的，此外资本调整，如果尚未支付。因此，我们认为这个扣除标题价格要双底和价格的芯片。税目（$ 4M）：前和结算后权益税的责任已经完全在SAPA第9条处理。因此，我们认为这是一个纯粹的价格的芯片。其他项目（C $7米。）：所有这些项目都是单独材料1十亿> $的交易，此外你的身边没有给出信贷的可能性几个类似大小正项目会在未来（入站定居点和存款版本）。这样一来，我们也认为这是一个纯粹的价格的芯片。其他降价（$45米）：你的身边已经联系这所使用的美达，是从来没有的优惠在本次交易（一）某些前美国知识产权周长; （二）各种非定量的或有负债，我们不认为这些材料; 和（iii）减少了赔款帽从10％（CGE的位置）或5％（美达的位置），以2％的感觉到的利益。显然，我们不与原则同意，并且幅度（购买价的3.5％）不能作为商业吸引力，因为它超过了我们的立场帽（5％至2％）的减少......不更何况，我们的立场也有2％的免赔额。因此，这也是从我们的角度来看具有明显的价格的芯片。总之，这个聚集到一个巨大代价芯片（10.2％），这是在一个交易的[理论]后期，并没有涉及到材料有关这是不是已经知道或在12月8日约束力的要约和12月2日SAPA提交草案时处理的项目。我想你可以想像我们的客户是通过这种方式极大地关闭，我们很难看到如何向前移动这里，考虑到留在最近一段时间SAPA草案显著障碍，和长/复杂符号到接近固有的CGE交易处理时特别。

結果 (中文) 3:

发送日程详细介绍了8500万美元的组件表示感谢。现在我们手上有备用的，我只能附和我们最初的直觉反应。

在我们看来，治疗潜在的债务调整适当的位置是在购买协议的负债定义（链接到一个时间表，如果需要的话），因此，在结束时，任何未付的余额都是以扣除为扣减的，而不是作为标题价格的减少。12月8日CGE的约束力的要约，并没有发现任何特别扣除额。CGE的萨帕草案发表于12月2日表示只有胃复安、诉讼负债债务减免和胃复安储备实际上已经计划将由卖方通过吸收在营运资本调整其包涵的程度不是已经支付了报收。

养老金（4000万美元）：该项目已经公开了所有的方式回到CIM和整个数据机房和尽职调查过程中预12月8日。其他投标人给我们提供了充分的清晰度，以其在其提供的处理（如债务或不）。这不是一个验证代码的发现。因此，我们认为其介绍在这一点上是一个重新的贸易和价格的芯片。

MERP（1100万美元）：类似于养老金，这已披露前12月8日通过尽职调查，而不是标记在CGE的约束力的要约或本公司有充分的机会去这么做。作为一个结果，我们也认为这是一个重新演绎的贸易和价格的芯片。

Reglan储备（2250万美元）：此项目可支付前关闭，