Medtronic Seals Deal with Covidien

Pioneer Press ^ | 1-7-15 | David Fondler and Tom Webb

[TurboZamboni]

Storied Minnesota medical-device company Medtronic will move its headquarters to Ireland after shareholders approved a merger Tuesday with Dublin-based health care supplier Covidien. The controversial $43 billion "inversion" deal will allow the new company, to be called Medtronic PLC, to reduce its corporate tax liability as it repatriates cash stored overseas. But the deal has irked longtime Twin Cities shareholders, who will face significant capital gains taxes on their Medtronic holdings. In preliminary vote totals, shareholders representing about 75 percent of Medtronic's outstanding shares approved the deal, general counsel Brad Lerman announced to a special shareholder meeting in Minneapolis. And at separate meetings Tuesday in Ireland, shareholders representing 99 percent of Covidien PLC shares voted for the deal. The final step is approval by Ireland's High Court, which Medtronic CEO Omar Ishrak said he expects to occur later this month or in early February. At that point, shares in Medtronic would be converted to shares in Medtronic PLC. Although domiciled in Ireland, the combined operational headquarters will remain in Fridley.

[TurboZamboni]

The deal "allows us to use the cash flows that are generated by the Covidien entities outside the U.S. ... and invest them in the U.S. without paying tax (here)," Ishrak said in June when the deal was unveiled. Since then, Medtronic shares have climbed 18 percent. But the deal has proven controversial on several fronts. Critics scorned it as a U.S. tax dodge. Political pressure has already led a few other U.S. corporations to back away from plans to relocate their headquarters overseas. "These companies are cherry-picking the rules, and it damages the country's finances," President Barack Obama said about corporate inversions in July. "It adds to the deficit. It sticks you with the tab to make up for what they are stashing ... I don't care if it's legal -- it's wrong."

[Pearls Before Swine]

Haha, BHO. I wish I could control my taxes.

[mj1234]

Now the Communists are mad they are leaving-

I have seen figures of upward of 4 $Billion a year in TAXES SAVED!!!

Aw... the demonrats cannot get their hands on the $$

Aw.... Mark Dayton and fellow demons WHO LOBBIED for the O’bummercare TAX on this company are mad they are moving-

Of all the storied large corporations here in Minnesota-
I am more shocked at anyone staying (currently -2 degrees)

[FoxInSocks]

Critics scorned it as a U.S. tax dodge.

Yeah, so? Who wouldn't flee this hostile tax climate, if they were able?

[MadMax, the Grinning Reaper]

My Medtronic defibrillator/pacemaker is working fine and I’m glad to see that the company isn’t going to take any more Marxist crap from Obama and his merry Marxist minions known as economists (Gruber, Krugman, Reich, etc).

Milton Friedmman is saying to Medtronics, “Flee, baby, flee”

[nascarnation]

I wish I could control my taxes.

You can, but not as a wage slave, or 401k/IRA owner, so it's not easy.

But I think many have gone Galt.