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
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