Monday, June 16, 2014

The Motley Fool: Medtronic Inc Changes the Game

In one dramatic swoop, Medtronic (NYSE: MDT  ) answered a lot of the questions that investors had about its plans for its overseas cash balance, it's long-term growth plans, and whether it wanted to enter additional "power alley" med-tech markets. Medtronic has announced that it will be acquiring Covidien (NYSE: COV  ) in a cash-and-stock transaction that is not only a tremendously large med-tech deal, but one that makes an exceptional amount of sense. 

Medtronic has changed the med-tech game on multiple levels. Not only will the new Medtronic be the most diversified company in med-tech, with leadership in over a half-dozen major therapeutic markets, but the size of this deal may well spur actions to close the tax inversion loopholes that companies have been using to reduce their tax bills. Most importantly of all, it's a good deal for Medtronic and Covidien shareholders, though some will see the tax ramifications as less than ideal.

Follow this link for more:
Medtronic Inc Changes the Game

No comments: