$/ = '';
$header = <MSG>;
$header =~ s/\n\s+/ /g; # merge continuation lines
%head = ( UNIX_FROM_LINE, split /^([-\w]+):\s*/m, $header );
That solution doesn't do well if, for example, you're trying to maintain all the Received lines. A more complete approach is to use the Mail::Header module from CPAN (part of the MailTools package).