Since Medtronic can’t dip into its considerable foreign cash reserves to buy Covidien, it plans to raise $16 billion domestically toward the $43 billion purchase. Wall Street is not pleased.
In a filing late last week with the U.S. Securities and Exchange Commission, Fridley, MN–based Medtronic said it expects to pay 4% to 4.5% in interest on the debt, which it believes will be in place before the deal closes in late 2014 or early 2015. Medtronic's annual interest payments would tally tens of millions of dollars.
The company had planned to use $13 billion of its own overseas cash and equivalents in a tax inversion deal. In an inversion, a U.S. company avoids paying federal taxes by buying a company in another country and moving its headquarters there.
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In a filing late last week with the U.S. Securities and Exchange Commission, Fridley, MN–based Medtronic said it expects to pay 4% to 4.5% in interest on the debt, which it believes will be in place before the deal closes in late 2014 or early 2015. Medtronic's annual interest payments would tally tens of millions of dollars.
The company had planned to use $13 billion of its own overseas cash and equivalents in a tax inversion deal. In an inversion, a U.S. company avoids paying federal taxes by buying a company in another country and moving its headquarters there.
Help employers find you! Check out all the jobs and post your resume.
