Merck/Schering Drugged up

German drugs group Schering has long been subject of bid speculation. Now, an unexpected suitor has emerged. Merck, its German rival, has offered E77 in cash per Schering share, valuing the company’s equity at about E15bn. Schering has dismissed the approach out of hand. But this looks like an emotional reaction. True, Schering may be able to squeeze out more. Merck isn’t exactly being stingy, but it isn’t being wildly generous either. True, the family-controlled group is prepared to pay a 35...