New rules on inversion deals has Wall Street speculating on the pending $43 billion merger of Medtronic (NYSE:MDT) and Covidien (NYSE:COV), but that hasn’t stopped them from moving forward with their integration plans. The medical device companies yesterday named representatives from both firms to a team that will plan the union of their respective peripherals businesses.
The team is co-chaired by Kim Cielecki, Covidien’s Senior Finance Director for Medical Device Shared Services, and Medtronic’s corporate development director Mark Pacyna, according to a regulatory filing.
peripheral vascular steering committee includes:
- Brian Verrier, president of Covidien’s peripheral vascular business;
- Stacy Enxing Seng, executive in residence at Covidien;
- Mike Cowhig, general counsel of Covidien’s vascular therapies unit;
- Tony Semedo, president of Medtronic’s aortic and peripheral vascular business;
- Jim McDermid, vice president of human resources at Medtronic;
- Dale Beumer, vice president of finance for Medtronic’s cardiac and vascular group;
- Neil Ayotte, deputy general counsel for Medtronic.
A separate project management office will guide the overall integration planning process, and includes Covidien executives Gordon Olson and Laura Driscoll; and Medtronic’s Rubal Bedi, Vikram Verghese, Joseph McGrath and Christopher Garland. Medtronic and Covidien have also put together a group of regional integration teams.
Other Covidien and Medtronic managers make up functional sub-team members listed in a memo to Covidien employees from Verrier and Cielecki, according to the filing.
Last week the U.S. Treasury Dept. issued new rules governing inversion deals like the Medtronic/Covidien merger. Although the rules are unlikely to scuttle the deal, they will probably force Medtronic to agree to new, more expensive terms.