Blockbuster: Medtronic in $43B deal to acquire Covidien
June 16, 2014 by Brad Perriello
Medtronic said yesterday that it agreed to acquire Covidien in a cash-and-stock deal worth nearly $43 billion.
The buyout, a so-called “inversion” deal, will allow Medtronic to lower its overall tax rate by re-incorporating in Ireland. But Medtronic CEO Omar Ishrak said main drivers were strategic. Read more
Medtronic buyout holds $80M in golden parachutes for Covidien execs
June 17, 2014 by Brad Perriello
If the top executives at Covidien decide to leave the company after a $43 billion acquisition by Medtronic goes through, they’ll do it under a golden parachute worth a collective $80 million, regulatory filings show.
The top 5 “named executives” at Covidien, led by chairman, president & CEO Joe Almeida, are in line for an average payout of some $16 million if they elect to depart after the deal’s consummation, slated for the end of this year or early next year. Read more
FDA wants another panel hearing on Boston Scientific’s Watchman anti-stroke device
June 17, 2014 by Brad Perriello
Boston Scientific CFO Dan Brennan said today that the FDA wants to hold another advisory panel hearing on its Watchman anti-stroke device and pushed the approval timeline for the Watchman heart implant into next year. Brennan, speaking today at the Wells Fargo Healthcare Conference, said Boston Scientific is now hoping for an approval during the 1st half of 2015.
The as-yet-unscheduled panel would be the 3rd advisory committee hearing over Boston Scientific’s pre-market approval application for the Watchman device and comes despite positive votes from the 2 prior meetings. Read more
European Commission tables review of Zimmer’s $13B acquisition of Biomet
June 13, 2014 by Brad Perriello
The European Commission tabled its review of the pending, $13.35 billion merger between Zimmer and Biomet, saying Zimmer’s submission for the June 3 review was insufficient.
The commission said it’s scrapped its July 9 decision deadline and will set a new date after Zimmer updates its submission. Read more
Ackman takes Allergan to court to defend against poison pill
June 13, 2014 by Arezu Sarvestani
Activist investor William Ackman is looking to take Allergan to court to ensure that the company won’t activate it’s “poison pill” when prospective acquirer Valeant Pharmaceuticals holds its shareholder meeting.
Allergan’s board adopted the poison pill strategy in April in order to insulate the company from Valeant’s unsolicited and unrequited acquisition offer. The 1-year measure would trigger the release of a raft of purchase rights, significantly diluting Allergan shareholders, should any one investor take 10% or more of the the company. Pershing acquired 9.7% of AGN’s shares in April. Read more
