Amid political noise, Ishrak seeks to reassure employees on Medtronic-Covidien deal
August 15, 2014 by Brad Perriello
Medtronic CEO Omar Ishrak today sought to spread oil on the waters of controversy surrounding Medtronic’s proposed $43 billion merger with Covidien, telling employees that the companies are well along in their integration planning and working to educate legislators and the public on the pending union’s rationale.
One aspect of the deal, a so-called tax inversion, would see Medtronic shift its corporate domicile from the U.S. to Covidien’s base in Ireland, thereby lowering Medtronic’s overall tax burden and freeing up cash generated overseas. That has raised hackles among both Republicans and Democrats, with the former using it to advocate for corporate tax reform and the latter seeking to ban inversions outright. Read more
Will Medtronic follow Walgreen and abandon inversion in Covidien deal?
August 15, 2014 by Brad Perriello
Medtronic might elect to alter the terms of its $43 billion offer to acquire Covidien over concerns about the tax inversion aspect of the deal, Bloomberg reported today.
Citing the high price of bets on Covidien’s share price declining, the news service reported that investors worry that Medtronic will follow Walgreen’s example and abandon the inversion portion of the deal, which would see Medtronic re-incorporate as an Irish entity subject to that country’s lower corporate tax rate. Read more
Medtronic founder Bakken backs Covidien buy
August 15, 2014 by Brad Perriello
Medtronic founder Earl Bakken told employees yesterday that he’s all for the pending, $3 billion acquisition of Covidien, writing from Hawaii that he views the deal as a way to expand Medtronic’s mission.
“As I see it, the most profound outcome of this relationship will be the ability to spread our Mission. We can serve more patients, in more ways, and in more places around the world than ever before. Instead of saying Medtronic improves a life ‘every 3 seconds,’ I expect that we’ll eventually be able to say ‘every second.’ Imagine that! And with Covidien sharing our ‘patient first’ focus, think of all the good we can do,” Bakken wrote in a memo distributed to Medtronic employees. Read more
Allergan-Valeant update: SEC launches Ackman probe, Allergan pays up to $588M for Liris bladder drug, Ackman dangles IPO
August 14, 2014 by Brad Perriello
Hedge fund mogul William Ackman and his Pershing Square Capital Management are facing an insider trading probe by the U.S. Securities & Exchange Commission over the hostile takeover bid for Allergan by Pershing Square and Valeant Pharmaceuticals, according to news reports.
Ackman and Valeant have been pressing for months for a proxy vote to oust Allergan’s board and replace it with a roster of their own candidates who would approve the $43.7 billion merger. Allergan has alleged in a lawsuit that its unwanted suitors broke insider trading laws in pursuing the union. Read more
Allergan CFO Edwards steps down amid hostile Valeant takeover bid | Personnel Moves
August 18, 2014 by Brad Perriello
Allergan said today that longtime CFO Jeff Edwards is stepping down to honor a commitment he made to his family earlier this year, replaced by treasurer Jim Hindman effective immediately.
Edwards promised his family earlier this year that he’d retire, before a hostile takeover by Valeant Pharmaceuticals and William Ackman’s Pershing Square Capital Management hedge fund surfaced. Despite the takeover battle, Edwards is standing by his family promise, although he’s be on tap as a non-executive officer to help smooth the transition, according to a press release. Read more
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