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Covidien plc (COV)

  • Nov. 28, 2014, 10:45 AM
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  • Nov. 26, 2014, 3:57 PM
    • The Federal Trade Commission approves the merger between Medtronic (MDT +1%) and Covidien plc (COV +1.2%) with the proviso that Covidien divest its drug-coated catheter business before completing the transaction. Covidien agreed to sell the business for $30M to Spectranetics (SPNC +1%) several weeks ago.
    • Previously: Medtronic buying Covidien for $42.9B
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  • Nov. 12, 2014, 4:53 AM
    • Medtronic (NYSE:MDT) submitted concessions last Friday in a bid to secure regulatory approval for its $43B acquisition of Covidien (NYSE:COV), says the European Commission.
    • The EU antitrust authority will decide by Nov. 28 whether to clear the deal.
    • A takeover of its Irish rival would reduce Medtronic's overall global tax burden, although it has said that the takeover is not an "inversion" deal for tax reasons.
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  • Nov. 3, 2014, 8:11 AM
    • Spectranetics (NASDAQ:SPNC) acquires Covidien's (NYSE:COV) Stellarex drug coated angioplasty balloon (DCB) platform for $30M. The company expects it to be a revenue catalyst beginning in 2015 and has the potential to deliver $100M to the top line within 2-3 years of commercialization in the U.S. Management expects it to be accretive to non-GAAP operating income, ex-items, in the first year following the start of the U.S. launch.
    • Research and development related to Stellarex will dilute 2015 earnings $28M - 32M or $0.65 - 0.75 per share, however.
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  • Oct. 3, 2014, 10:19 AM
    • Shaking off the potential flak from Uncle Sam for using its foreign cash to buy Covidien (COV +5.2%), Medtronic (MDT +3.5%) instead will rely on $16B in external financing to complete the transaction. Covidien shareholders will still receive $35.19 per share in cash plus 0.956 of an ordinary share of Medtronic.
    • All terms and conditions of the definitive agreement signed by the two firms in June remain unchanged.
  • Sep. 23, 2014, 7:45 AM
    • U.S. Treasury Secretary Jack Lew says that the Obama Administration is prepared to institute rules to stop tax inversion deals. If so, it will do so without a sliver of Republican support. Barclays analyst Michael Leuchten says, "Washington is playing for time. It makes them look good and it allows Congress to maybe get its act together and maybe do something on the legislative side."
    • Mr. Lew's comments have spooked the market a bit. European companies already involved in deals or rumored to be targets are all under pressure due to the perception that some of the deals already announced may be at risk.
    • The U.S. firm in the best position is Horizon Pharma (NASDAQ:HZNP). It completed its tax inversion transaction with Ireland-based Vidara Therapeutics last week.
    • Related tickers: (MDT -0.4%)(COV -0.5%)(ABBV -0.6%)(SHPG -0.7%)(OTCQB:SHPGF -1.5%)(PFE -0.7%)(AZN -0.1%)(SNN +0.1%)(SYK -0.8%)
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  • Sep. 23, 2014, 3:45 AM
    • Under Treasury Secretary Jack Lew’s crackdown on inversions, the Treasury Department announced new tax rules late yesterday to deter U.S. companies from moving their domicile to countries with lower tax rates.
    • The tax changes make it harder for companies to complete overseas mergers, and should they choose to invert, companies will face a hard time using the cash accumulated abroad.
    • The new rules are effective immediately and apply to all deals that have not closed by yesterday.
  • Aug. 28, 2014, 7:23 AM
    • Covidien (NYSE:COV) acquires privately-held North Carolina-based Sapheon for an undisclosed amount. Sapheon's lead product is the CE-Marked VenaSeal system for the treatment of varicose veins and chronic venous insufficiency. In addition to the EU, it is approved for sale in Canada and Hong Kong.
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  • Aug. 22, 2014, 7:18 AM
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  • Jun. 16, 2014, 7:26 AM
    • Share price movement of the acquirer is always an accurate metric for the market's opinion of an acquisition or merger. Investors appear to like Medtronic's (MDT) buy of Covidien (COV) announced yesterday. MDT is up 12% premarket on robust volume. COV, as expected, is up 36%.
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  • Jun. 15, 2014, 9:37 PM
    • Confirming earlier reports, Medtronic (MDT) is buying Covidien (COV) in a cash and stock deal valuing Covidien at $93.22 per share based on Medtronic's Friday close of $60.70. The price represents a near-30% premium to Covidien's Friday close.
    • The transaction will have each share of Covidien converted into the right to receive $35.19 in cash and 0.956 shares of Medtronic.
    • Medtronic expects the purchase to be accretive to cash earnings in the first fiscal year following the close (late this year, or early next), and significantly accretive thereafter, with $850M of annual pre-tax cost synergies by the end of fiscal 2018.
    • As noted earlier, the purchase will have Medtronic moving its principal executive offices to Ireland, where corporate tax rates are lower than the U.S.
    • Press release
    • Previously: Medtronic in talks for $40B+ Covidien deal
  • Jun. 15, 2014, 10:59 AM
    • 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.
  • Dec. 26, 2012, 7:31 AM
    Covidien (COV) announces the acquisition of privately-help CV Ingenuity for an undisclosed amount. CV Ingenuity's key asset - still in investigational phase - is a Drug Coated Balloon platform for treating peripheral arterial disease. (PR)
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  • Oct. 17, 2012, 4:11 PM
    Given Imaging (GIVN) says it's exploring strategic alternatives including possible merger or sale of the company. Preliminary indications of interest have already been received from a number of parties. The company intends to continue to actively explore these and other alternatives, including a strategic alliance or additional acquisitions. The Board has appointed an executive committee to oversee the process. Barclays is assisting in the process. Shares +2% AH.
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  • Oct. 4, 2012, 11:00 AM
    Israeli medical device company Given Imaging (GIVN +1.4%) acquires the SmartPill GI Monitoring System from The SmartPill Corporation, a U.S.-based firm, for $6M. The SmartPill is an ingestible capsule that uses sensor technology to measure pH, pressure and temperature in the GI tract, and is used to evaluate motility disorders like gastroparesis and constipation.
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  • Apr. 5, 2012, 3:21 AM
    Covidien (COV) will buy Israel-based Oridion Systems (ORDNF.PK) for ~$300M in cash, calling Oridion's products "excellent complements to the company's current portfolio of pulse oximeters and monitoring products." (PR)
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Company Description
Covidien PLC is engaged in the development, manufacture and sale of healthcare products for use in clinical and home settings. The Company's business segments are Medical Devices and U.S Medical Supplies.