SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 13G
Under the Securities Exchange Act of 1934 
 
 
Magellan Health Services, Inc.
(Name of Issuer)


Common Stock, $0.01 par value
(Title of Class of Securities)


559079207
(CUSIP Number)


February 28, 2008
(Date of Event Which Requires Filing of this Statement)
 
Check the following box to designate the rule pursuant to which the Schedule is filed:

o
Rule 13d-1(b)
 
x
Rule 13d-1(c)
 
o
Rule 13d-1(d)
 

* The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 

CUSIP No. 559079207
 
  
 
1.
Names of Reporting Persons
I.R.S. Identification Nos. of above persons (entities only)
D. E. Shaw Valence Portfolios, L.L.C.
13-4046559
  
       
 
2.
Check the Appropriate Box if a Member of a Group (See Instructions)
 
   
(a)
o
      
   
(b)
o
      
         
 
3.
SEC Use Only
 
       
 
4.
Citizenship or Place of Organization
Delaware
  
       
Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
5.
Sole Voting Power
-0-
  
       
     
6.
Shared Voting Power
2,319,065
  
           
     
7.
Sole Dispositive Power
-0-
  
           
     
8.
Shared Dispositive Power
2,319,065
  
           
 
9.
Aggregate Amount Beneficially Owned by Each Reporting Person
2,319,065
  
       
 
10.
Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions) o
  
       
 
11.
Percent of Class Represented by Amount in Row (9)
5.8%
  
       
 
12.
Type of Reporting Person (See Instructions)
OO
  
 

CUSIP No. 559079207
 
  
 
1.
Names of Reporting Persons
I.R.S. Identification Nos. of above persons (entities only)
D. E. Shaw & Co., L.P.
13-3695715
  
       
 
2.
Check the Appropriate Box if a Member of a Group (See Instructions)
 
   
(a)
o
  
   
(b)
o
  
         
 
3.
SEC Use Only
 
       
 
4.
Citizenship or Place of Organization
Delaware
  
       
Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
5.
Sole Voting Power
-0-
  
       
     
6.
Shared Voting Power
2,323,565
  
           
     
7.
Sole Dispositive Power
-0-
  
           
     
8.
Shared Dispositive Power
2,324,565
  
           
 
9.
Aggregate Amount Beneficially Owned by Each Reporting Person
2,324,565
  
       
 
10.
Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions) o
  
       
 
11.
Percent of Class Represented by Amount in Row (9)
5.8%
  
       
 
12.
Type of Reporting Person (See Instructions)
IA, PN
  
 
 
 
CUSIP No. 559079207
  
   
 
1.
Names of Reporting Persons
I.R.S. Identification Nos. of above persons (entities only)
David E. Shaw
  
       
 
2.
Check the Appropriate Box if a Member of a Group (See Instructions)
 
   
(a)
o
 
  
   
(b)
o
    
         
 
3.
SEC Use Only
 
       
 
4.
Citizenship or Place of Organization
United States
  
       
Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
5.
Sole Voting Power
-0-
  
       
     
6.
Shared Voting Power
2,323,565
  
           
     
7.
Sole Dispositive Power
-0-
  
           
     
8.
Shared Dispositive Power
2,324,565
  
 
 
9.
Aggregate Amount Beneficially Owned by Each Reporting Person
2,324,565
  
       
 
10.
Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions) o
  
       
 
11.
Percent of Class Represented by Amount in Row (9)
5.8%
  
       
 
12.
Type of Reporting Person (See Instructions)
IN
  
 
 
Item 1.
   
(a)
 
Name of Issuer:
   
Magellan Health Services, Inc.
     
(b)
 
Address of Issuer's Principal Executive Offices:
   
55 Nod Road
Avon, Connecticut 06001
     
Item 2.
   
(a)
 
Name of Person Filing:
   
D. E. Shaw Valence Portfolios, L.L.C.
D. E. Shaw & Co., L.P.
David E. Shaw
     
(b)
 
Address of Principal Business Office or, if none, Residence:
   
The business address for each reporting person is:
120 W. 45th Street, Tower 45, 39th Floor
New York, NY 10036
     
(c)
 
Citizenship:
   
D. E. Shaw Valence Portfolios, L.L.C. is a limited liability company organized under the laws of the state of Delaware.
D. E. Shaw & Co., L.P. is a limited partnership organized under the laws of the state of Delaware.
David E. Shaw is a citizen of the United States of America.
     
(d)
 
Title of Class of Securities:
   
Common Stock, $0.01 par value
     
(e)
 
CUSIP Number:
   
559079207
  
Item 3.
If this statement is filed pursuant to Rule 13d-1(b) or 13d-2(b) or (c), check whether the person filing is a:
 
     
Not Applicable
  

Item 4.
Ownership
  
     
As of March 5, 2008:
 
(a) Amount beneficially owned:
 
D. E. Shaw Valence Portfolios, L.L.C.:
2,319,065 shares
This is composed of (i) 2,314,065 shares in the name of D. E. Shaw Valence Portfolios, L.L.C. and (ii) 5,000 shares that D. E. Shaw Valence Portfolios, L.L.C. has the right to acquire through the exercise of listed call options.
   
D. E. Shaw & Co., L.P.:
2,324,565 shares
This is composed of (i) 2,314,065 shares in the name of D. E. Shaw Valence Portfolios, L.L.C., (ii) 5,000 shares that D. E. Shaw Valence Portfolios, L.L.C. has the right to acquire through the exercise of listed call options, (iii) 600 shares in the name of D. E. Shaw Oculus Portfolios, L.L.C., and (iv) 4,900 shares under the management of D. E. Shaw Investment Management, L.L.C.
 
David E. Shaw:
2,324,565 shares
This is composed of (i) 2,314,065 shares in the name of D. E. Shaw Valence Portfolios, L.L.C., (ii) 5,000 shares that D. E. Shaw Valence Portfolios, L.L.C. has the right to acquire through the exercise of listed call options, (iii) 600 shares in the name of D. E. Shaw Oculus Portfolios, L.L.C., and (iv) 4,900 shares under the management of D. E. Shaw Investment Management, L.L.C.
 
(b) Percent of class:
 
D. E. Shaw Valence Portfolios, L.L.C.:
5.8%
 
D. E. Shaw & Co., L.P.:
5.8%
 
David E. Shaw:
5.8%
 
(c) Number of shares to which the person has:
 
(i)      Sole power to vote or to direct the vote:
 
D. E. Shaw Valence Portfolios, L.L.C.:
-0- shares
 
D. E. Shaw & Co., L.P.:
-0- shares
 
David E. Shaw:
-0- shares
 
(ii)     Shared power to vote or to direct the vote:
 
D. E. Shaw Valence Portfolios, L.L.C.:
2,319,065 shares
 
D. E. Shaw & Co., L.P.:
2,323,565 shares
 
David E. Shaw:
2,323,565 shares
 
(iii)    Sole power to dispose or to direct the disposition of:
 
D. E. Shaw Valence Portfolios, L.L.C.:
-0- shares
 
D. E. Shaw & Co., L.P.:
-0- shares
 
David E. Shaw:
-0- shares
 
(iv)    Shared power to dispose or to direct the disposition of:
 
D. E. Shaw Valence Portfolios, L.L.C.:
2,319,065 shares
 
D. E. Shaw & Co., L.P.:
2,324,565 shares
 
David E. Shaw:
2,324,565 shares
 
David E. Shaw does not own any shares directly. By virtue of David E. Shaw’s position as President and sole shareholder of D. E. Shaw & Co., Inc., which is the general partner of D. E. Shaw & Co., L.P., which in turn is the managing member and investment adviser of D. E. Shaw Valence Portfolios, L.L.C., the investment adviser of D. E. Shaw Oculus Portfolios, L.L.C., and the managing member of D. E. Shaw Investment Management, L.L.C., and by virtue of David E. Shaw’s position as President and sole shareholder of D. E. Shaw & Co. II, Inc., which is the managing member of D. E. Shaw & Co., L.L.C., which in turn is the managing member of D. E. Shaw Oculus Portfolios, L.L.C., David E. Shaw may be deemed to have the shared power to vote or direct the vote of 2,323,565 shares, and the shared power to dispose or direct the disposition of, 2,324,565 shares, the 2,324,565 shares as described above constituting 5.8% of the outstanding shares and, therefore, David E. Shaw may be deemed to be the beneficial owner of such shares. David E. Shaw disclaims beneficial ownership of such 2,324,565 shares.
 
Item 5.
Ownership of Five Percent or Less of a Class
Not Applicable
 
Item 6.
Ownership of More than Five Percent on Behalf of Another Person
Not Applicable
 
Item 7.
Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on By the Parent Holding Company or Control Person
Not Applicable
 
Item 8.
Identification and Classification of Members of the Group
Not Applicable
 
Item 9.
Notice of Dissolution of Group
Not Applicable
 
Item 10.
Certification
By signing below, each of D. E. Shaw Valence Portfolios, L.L.C., D. E. Shaw & Co., L.P., and David E. Shaw certify that, to the best of such reporting person’s knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having such purposes or effect.
 
 

SIGNATURE
 
After reasonable inquiry and to the best of their knowledge and belief, the undersigned certify that the information set forth in this statement is true, complete and correct. A Power of Attorney, dated October 24, 2007, granted by David E. Shaw in favor of Rochelle Elias, is attached hereto.

Dated: March 10, 2008
 
 
D. E. Shaw Valence Portfolios, L.L.C.
 
By:   
D. E. Shaw & Co., L.P., as managing member
 
 
 
 
    By:  /s/ Rochelle Elias
 
 
 
Rochelle Elias
Chief Compliance Officer
 
     
  D. E. Shaw & Co., L.P.
 
 		  
 		  
 
  By:    /s/ Rochelle Elias
 
Rochelle Elias
Chief Compliance Officer
 
     
  David E. Shaw
 
 		  
 		  
 
  By:    /s/ Rochelle Elias
 
Rochelle Elias
Attorney-in-Fact for David E. Shaw