Report: Valeant's hostile takeover hopes fade as Allergan war continues
August 6, 2014 by Arezu Sarvestani
Aesthetics devices maker Allergan threw another punch in the ongoing war with hostile buyer Valeant Pharmaceuticals, calling out alleged problems with Valeant’s latest earnings report.
The ongoing war between the aggressive buyer and uninterested device maker has taken a toll on Valeant, and some negative sentiments from shareholders may signal the downfall of the unrequited $53 billion offer, one analyst said. Read more
Medtronic hires ex-Senators to lobby for Covidien deal
August 11, 2014 by Arezu Sarvestani
Medtech titan Medtronic has a few heavy-hitters in its corner during its fight against anti-corporate inversion measures on Capitol Hill.
Regulatory disclosures show that Medtronic hired a lobbying group that includes Trent Lott, former Senate Majority Leader, and John Breaux, former member of the Senate Finance Committee. Medtronic’s reports indicate that the duo will devote its lobbying effort to “issues regarding acquisition of medical supplies provider Covidien.” Read more
FTC wants more data on Medtronic-Covidien deal, but analysts aren't worried
August 7, 2014 by Arezu Sarvestani
The anti-inversion commotion in Washington, D.C., is “more bark than bite” and unlikely to turn into reform in time to damage Medtronic’s $43 billion deal with Covidien, according to analysts with Morgan Stanley.
Democrats have won support from the White House for efforts to penalize companies that relocate their corporate headquarters outside of the U.S. in order to benefit from lower tax rates, but Republicans won’t be so eager to play along, the analysts wrote. Read more
St. Jude closes $200M NeuroTherm buy
August 7, 2014 by Arezu Sarvestani
Medtech titan St. Jude Medical officially entered the spinal pain market this week, announcing the close of its $200 million cash acquisition of NeuroTherm.
The deal makes St. Jude the only company in the space with both radiofrequency ablation devices, which came from NeuroTherm, in addition to spinal cord stimulation systems in its chronic pain product portfolio. St. Jude has been bulking up its pain management technologies substantially in recent months. Read more
Medtronic-Covidien merger means tax hit for all stockholders, including execs
August 11, 2014 by Arezu Sarvestani
The mega-merger between Medtronic and Covidien has ruffled some feathers among shareholders concerned about the looming capital gains tax that’s going to hit when the deal closes, but regular shareholders aren’t the only ones facing a bill. Executives and board members are no more insulated from the tax than any other shareholders, according to a Medtronic presentation.
The merger includes a provision to cover costs of an extra excise tax that applies only to certain “Section 16b” officers of the company as well as members of the board of directors, but those individuals are still on the hook for paying the capital gains tax on their shares once the deal closes. Read more
