Either make a deal or tell the judge to rule already! If the judge trebles the ruling, and the $340M is the number, we'll see a print of 8.5+ on the same day. If RVP takes approximately half after taxes and lawyers, that's $170M or approximately $6/share, plus another $1/share in cash on the balance sheet now, and the company is worth another $1.5-2/share in intrinsic value. If the Judge reimburses legal fees, that's another $2/share. If there's an injunction against BDX for future monopolistic behavior, I would value it at an additional $2-4/share. There would have to be a discount for time value of money and risk of Appeal (25-30%); however, a bad ruling against BDX (particularly with any sort of injunction) would necessitate a deal post ruling, reducing the discount to 10-15%. Hence by my math $8.5/share would be right, especially since that's approximately the historical high.
As a fan of BDX stock, I hope that BDX simply buys RVP for approximately $8.5/share (give or take $250M). RVP is worth $575M+ in the hands of BDX. ($400M of legal liability + $75M of intrinsic value and cash + $100M plus of synergy)
All that said, either put up or shut up, and let the chips fall where they may.
However,it appears none of the troika got an upper hand.
All standing their own ground till one will faint.
I'm surprised this judge didn't give them a deadline to compromise or else.
Also, for BDX, even this amount of money will not kill them, it will hurt them a lot. Only negative thing that could happened is that BDX leave the case goes further, another appeal, etc..., Until now, judge got some conclusions that will be binding for the further case. And it means that RVP will get the case soon or later. For BDX - "later" means more money to pay, more penalties, more a lot of troubles and even BDX is strong company, I think it will be enormous luxury for them to let it goes further. So, I (and a lot of us) hope all sides will have enough brain to get this case finished.