Medtronic in talks for $40B+ Covidien deal

Medtronic (MDT) is in advanced talks to buy Covidien (COV) for more than $40B. The deal could be announced as early as tomorrow.

The tax inversion will allow Medtronic to be domiciled in Ireland, where Covidien is based, and permit the company to pay a lower corporate tax rate.

Medtronic has a current market value of $61B, and Covidien is valued at $32B.

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Comments (6)
  • factsmatter
    , contributor
    Comments (129) | Send Message
    Could we change our insanely high corporate income tax rate already so that we don't incentivize American companies to relocate? That portion of earnings that are distributed to shareholders are then being taxed immediately again as dividend income-- double taxation.
    15 Jun 2014, 06:47 PM Reply Like
  • Travel4Yields
    , contributor
    Comments (752) | Send Message
    The talking is all done...MDT & COV have agreed to a merger. Medtronic has agreed to acquire Covidien in a cash-and-stock transaction valued at $93.22 per Covidien share, or a total of approximately $42.9 billion


    Read More At Investor's Business Daily:
    15 Jun 2014, 08:13 PM Reply Like
  • chopchop0
    , contributor
    Comments (5354) | Send Message
    Between the insane corporate tax rates and loopholes that have emerged, and the taxation of citizens living in foreign countries (leading to record numbers of people renouncing their U.S.citizenship), the U.S.A. looks like it is creating a great foundation for the future
    15 Jun 2014, 08:21 PM Reply Like
  • slam stocks
    , contributor
    Comments (1454) | Send Message
    Double taxation and uneducated Americans limits US prosperity and job opportunities. With more consolidation in the medical industry, higher healthcare costs will ensue. Politicians need to encourage companies to bring money home without being taxed again.


    This deal is great for investors, horrible for everyone else.
    15 Jun 2014, 08:27 PM Reply Like
  • SoCalNative+(RIP)
    , contributor
    Comments (651) | Send Message
    "Double taxation and uneducated Americans limits US prosperity and job opportunities."


    'Nuff said
    15 Jun 2014, 09:00 PM Reply Like
  • Scott479
    , contributor
    Comments (35) | Send Message
    Do you hold MDT? You're about to have your basis upped to current prices and be taxed on the "gain" even as you're automatically handed back those same shares....take a look at PRGO which did the same move and just cost us tens of thousands to the state of MA. where we'd moved to from NV. to temporarily care for an ailing family member.....
    16 Jun 2014, 09:22 AM Reply Like
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