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Medtronic Rumored To Buy Covidien

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Medtronic Rumored To Buy Covidien
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Shares of Covidien (NYSE: COV) will likely shoot higher Monday morning after Bloomberg reported Medtronic (NYSE: MDT) is in talks to acquire the company.

According to the Bloomberg report, Medtronic will be spending $40 billion for the medical supplier, which would put shares about 23 percent higher than Friday’s closing price.

Analysts are speculating that Medtronic wants to buy Covidien for the tax advantage it would receive by moving its headquarters to Ireland. One if the biggest advantages is the cash it could use that is currently oversees: $14 billion. The basis of this speculation is that the companies’ offerings do not have much in common.

Shares of Medtronic and Covidien are up 5.76 percent and 5.75 percent, versus a 4.75 percent gain on the S&P 500.

Posted-In: BloombergNews Rumors M&A Best of Benzinga

 

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