Medtronic, Covidien name peripherals biz transition team
October 1, 2014 by Alex Soule
New rules on inversion deals has Wall Street speculating on the pending $43 billion merger of Medtronic and Covidien, 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. Read more
Medtronic is still in on Covidien buyout
October 3, 2014 by Brad Perriello
Medtronic said today that it will finance its mega-merger with Covidien using $16 billion in “external financing” instead of the foreign cash it was planning to use.
The move was prompted by the U.S. Treasury Dept.’s move last week to crack down on so-called “inversion deals,” in which a U.S. company acquires a foreign entity – Covidien is domiciled in Ireland but runs its business from Massachusetts – and re-incorporates in that jurisdiction to avoid high corporate tax rates in the U.S. Read more
The Street cheers changes to the Medtronic, Covidien deal
October 3, 2014 by Brian Johnson
Medtronic said today that it will finance its mega-merger with Covidien using $16 billion in “external financing” instead of the foreign cash it was planning to use, a move that sent shares of both companies soaring on Wall Street.
The move was prompted by the U.S. Treasury Dept.’s move last week to crack down on so-called “inversion deals,” in which a U.S. company acquires a foreign entity – Covidien is domiciled in Ireland but runs its business from Massachusetts – and re-incorporates in that jurisdiction to avoid high corporate tax rates in the U.S. Read more
Zimmer adds Harvard spinout Etex Corp.
October 2, 2014 by Alex Soule
Zimmer said yesterday that it paid an unspecified amount for Etex Corp. and the bone biomaterials it’s developing in Cambridge, Mass.
Etex, which was founded in 1989 by Harvard Dental School researcher Dosuk Lee, makes the FDA-cleared EquivaBone bone void filler for spine and trauma applications. The company is also developing highly porous bone substitute materials for bioactive molecule delivery, according to a press release. Read more
EU to extend Zimmer, Biomet probe
October 2, 2014 by MassDevice
EU antitrust regulators will open an extensive probe into Zimmer $13.4 billion bid for Biomet, concerned that the creation of the world’s 2nd-largest orthopedic products group may hurt competition, 3 people familiar with the matter said today.
The European Commission has been reviewing the deal between Zimmer and Biomet since August, after tabling it for a spell in June, and has set an Oct. 3 deadline for its decision, although this could be extended by 90 working days if it opens a broad investigation. Read more
