Covidien (NYSE:COV) and Medtronic (NYSE:MDT) continue to make progress on their pending mega-merger, now planning to host the 1st of 4 Integration Summits to discuss how to navigate a "smooth, seamless integration" between the companies.
The 1st summit is scheduled for September 25th and 26th, where leaders from both companies will meet to discuss each of the business divisions post-merger.
"The purpose is to get a better sense of how any changes in how we run the various functions will impact the business. We need to determine which way will be best for the new company," Covidien integration vice president Bill Burke said in an SEC filing. "In short, the purpose of this first integration summit is to come away with approved high level plans that have been socialized with leadership."
Integration teams on both side of the merger are using the rest of the month to prepare for the summit, Burke added.
Medtronic announced in June that it had agreed to acquire Covidien in a cash-and-stock deal worth nearly $43 billion. Terms of the deal, expected to close during the 4th quarter or in early 2015, call for Medtronic to pay $93.22 per share for Covidien. Each COV share will be converted to the right for $35.19 in cash and 0.956 MDT shares. Medtronic said that equates to a 29% premium on COV’s $75.02 closing price June 13. The deal will leave Covidien stockholders with about a 30% stake in Medtronic, the world’s largest-pure-play medical device company.
