Medical-device maker Medtronic Inc and rival Covidien PLC are in advanced talks to combine in a deal that could be worth more than $40 billion, the Wall Street Journal reported on Saturday, citing people familiar with the matter. The Journal said the deal, which could be announced on Monday, would be structured as a so-called tax inversion, according to one of the people.In such deals, acquirers purchase companies based in countries with lower corporate tax rates than their own as a means of lowering their overall rate. Covidien is based in Ireland, which is known for having a relatively low tax rate.Minneapolis-based Medtronic, which makes cardiovascular and orthopedic devices, has a market value of about $61 billion. Covidien, which makes devices used in surgery, is valued at about $32 billion.Pfizer Inc recently mounted an abortive takeover bid for British-based AstraZeneca in what would have been a roughly $120 billion deal aimed in part at lowering the U.S. drug firm's corporate tax rate.
Covidien Public Limited Company is engaged in the development, manufacture and sale of healthcare products for use in clinical and home settings. Shares of COV fell by 0.03% or $-0.02/share to $72.02. In the past year, the shares have traded as low as $53.05 and as high as $73.80. On average, 1943330 shares of COV exchange hands on a given day and today's volume is recorded at 829914.
Medtronic, Inc. (Medtronic) is engaged in medical technology - alleviating pain, restoring health, and extending life for millions of people worldwide. Shares of MDT fell by 0.15% or $-0.09/share to $60.70. In the past year, the shares have traded as low as $51.06 and as high as $64.33. On average, 4298760 shares of MDT exchange hands on a given day and today's volume is recorded at 2085267.
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