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Monday, August 18, 2014

ConvaTec owners eye 2015 sale as buyout interest builds-sources, (NYSE: MMM)

ConvaTec's private equity owners plan to explore a sale of the medical device maker next year, even as interest from several healthcare companies in a potential $10 billion acquisition intensifies, according to people familiar with the matter. Amid a wave of mergers in the healthcare sector aimed at reducing corporate tax rates, Luxembourg-based ConvaTec has emerged as a target for U.S. companies looking to move their tax domiciles abroad in a practice known as inversion.Diversified U.S. manufacturer 3M Co and medical equipment makers CareFusion Corp and C.R. Bard Inc are among the companies exploring a potential deal for ConvaTec, the people said.CareFusion, with a market capitalization of $9 billion, and C.R. Bard, with $11.2 billion, would both be able to achieve an inversion if they use their own stock to pay for ConvaTec.While ConvaTec would review any compelling offer that would come before 2015, the company for now wants to boost its value further before launching an auction or an initial public offering next year, the people said.

3M Company (3M) is a diversified technology company. Shares of MMM traded higher by 1.41% or $2.0/share to $143.92. In the past year, the shares have traded as low as $112.36 and as high as $146.43. On average, 1913200 shares of MMM exchange hands on a given day and today's volume is recorded at 1271743.