A few short hits to kick off the week: Marketfolly posts a copy of Third Point Capital’s Q3 newsletter in which chief Dan Loeb talks about the firm’s position in Baxter International (BAX). Mr. Loeb is a big fan of new CEO Jose ‘Joe’ Almeida which shouldn’t come as much of a surprise given that the fund’s board representative helped… Read More »
Mallinckrodt(MNK) began the week trading at $70 per share. Six months ago, it was above $130. Today, after some comments from Andrew Left of Citron Research, it trades at $62.58, having touched as low as $52.01. The drug company was spun off of Covidien in 2013. Covidien, which had spun out of Tyco(TYC), was acquired in 2014 by… Read More »
Merger Mondays are back. The latest mega deal announced is Medtronic’s (MDT) ~$42.9b takeover of device maker Covidien (COV). The deal price represents a ~30% premium and includes $35.19 of cash and 0.956 Medtronic shares. While Medtronic’s management is out touting the numerous cost savings and synergies gained through the deal, the main motivation behind the deal appears to… Read More »
Spinoffs take a lot of time. It really isn’t so surprising considering the plethora of regulatory and logistical issues that arise from splitting up a business. While often overlooked as one time charges, companies spend millions upon millions planning and executing these transactions. As a result, at least 6 months usually pass between the date of announcement and… Read More »
In an attempt to mimic the company’s lifesaving products, Medtronic (MDT) announced that plans to divest its Physio-Control subsidiary have been revived. While overshadowed by broader restructuring plans, the Physio announcement was made during the company’s Q3 earnings release and elaborated on (a bit) during the conference call by the company’s CFO, Gary Ellis (Q&A portion here). Unfortunately,… Read More »