The threat of U.S. tax revenue losses from Medtronic Inc's plan to purchase rival Covidien Plc and move its base to Ireland is stoking concerns from lawmakers and the Obama administration about corporate tax "inversion" deals. While such deals used to be rare, a recent flurry of them has motivated lawmakers to propose legislation to make it harder for companies to use inversion deals that reap tax benefits from reincorporating in low-tax jurisdictions overseas.Ron Wyden, chairman of the Senate Finance Committee and an Oregon Democrat, said the Medtronic deal underscores the urgent need to pursue corporate tax reform instead of waiting until after the 2016 presidential election."This will be a wakeup call," Wyden said in an interview with Reuters. "It's clear that the system rewards this kind of gaming."Wyden in May promised to make it harder for U.S. companies to do inversion deals that take place on or after May 8, 2014, but such a reform has not yet gained widespread support.
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 traded higher by 20.45% or $14.73/share to $86.75. 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 68099024.
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