On the day Warren Buffett announced that Berkshire Hathaway’s subsidiary, Mid American Energy. would acquire PacifiCorp for $5.1 billion in cash and $4.3 billion in liabilities and preferred stock, Berkshire Hathaway’s Class A shares popped by 2.4%. The increase represented a $2.17 billion gain in Berkshire's market value of equity or “market cap”, on a day when the S&P composite index was virtually flat. What does this price action imply about the “intrinsic” value of PacifiCorp? (Before you answer, review Buffett’s definition of “intrinsic value” at bottom of p. 7.)