Medtronic (MDT) Remains Committed to Covidien (COV) Deal, Says Deutsche Bank Citing Management

Medtronic (NYSE: MDT) remains committed to closing the Covidien plc (NYSE: COV) deal, said Deutsche Bank analyst Kristen Stewart, citing management. Shares declined on reports AbbVie (NYSE: ABBV) may drop its bid for Shire plc (NASDAQ: SHPG) due to unfavorable tax law changes.

"We have received a lot of questions today following some announcements made by other companies that are involved in inversion transactions," said Stewart. "We have spoken with Medtronic and have confirmed with them that there are no new updates to make and that they remain committed to closing the Covidien transaction, as they reaffirmed on October 3."

"As a general comment, we believe investors need to recognize that each inversion deal is different, as are the companies involved. We continue to view the Medtronic–Covidien deal as a major positive with strategic, operational, and financial benefits," added the analyst.

For an analyst ratings summary and ratings history on Covidien Ltd click here. For more ratings news on Covidien Ltd click here.

Shares of Covidien Ltd closed at $92.36 yesterday.

You May Also Be Interested In

• Deutsche Bank Upgrades Target Hospitality (TH) to Buy
• Bernstein on whether Hershey (HSY) could eventually step up to buy Mondelez (MDLZ)
• Deutsche Bank Starts Ardagh Metal Packaging S.A. (AMBP) at Hold