Inversions deal to go ahead
First published in Business News Online, 23 September 2014
Medtronic (MDT) said it was studying the Treasury action to assess potential impact on its planned $42.9 billion inversion acquisition of Ireland-based Covidien. Several other U.S. firms with pending inversion plans did not immediately respond to messages seeking comment Tuesday.
Treasury Secretary Jacob Lew said the crackdown is aimed at halting a wave of planned or announced inversions that could erode the nation's corporate tax base and shift more of the tax burden to small businesses and average American taxpayers. Lew stressed, however, that the rules were not designed to thwart strategic deals not exclusively based on corporate tax-cutting.
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