covidien is based in ireland, a torte corporate tax haven.o by acquiring covidien, medtronic will be able to relocate its headquarters and change where its domiciled, in order to benefit, but medtronic didn't just bike it because it was an attractive takeover. no, what's happened in the mel device space looks like what we've been seeing in the grocery store aisle, where food companies are aggressively merging with each other to take market share. the same is true in the medical device space. by acquiring covidien medtronic will be able to accelerate its growth and gain share in vascular devices, periscopic instruments, electrical surgical, as well as all sorts of soft-tissue repairs. this is zimmer orthopedic device play? just like what they did when they agreed to buy biomed. and it's the same logic that made striae kerr -- by the way, if you're looking for the next medical device takeover target, the next covidien, i think it should by smith & nephew. bottom line, call it the breakup takeover two-step. when you split up the company in small

a total deal of $42.9 billion as medtronic buys covidien.look to see where this stands, but again look at what happens with covidien shares on this news. >>> medtronics will move its base to ireland to reduce its global taxes. we'll talk to the chairman and ceo bill george to get his take on it later this morning. >>> and siemens and mitsubishi are prepared to join in an offer of alstom.

covidien acquired by medtronic. $42 billion deal, see covidien up 26%. medtronic up.uebird, positive result forward gene therapy treatment. on the upside. goodyear tires up 2.5%, positive mention in barrons. the comment from michael heartnet, one of the big strategists at bank of america merrill lynch, the case for summer meltup remains stronger than that for summer meltdown as the high liquidity low growth backdrop forces investor cash levels down. a lot of people wondering whether it's going from here. i would note, the federal reserve meeting this week, it's the first one with stanley fischer as vice chairman. considered a moderate. the opinion is we're going to stay on the liberal side, or the dovish side. back to you. >> thank you, bob pisani. valeant, jim, continuing to go at it. taking an interesting turn. gotten nastier. a press released by allergan at 7:00 a.m., continuing to take up the theme of coming at valeant stock price, questioning it, quoting people, many of whom we've heard from in the past, whether it's hampton or jim chanos. at end of the press rel

a total deal of $42.9 billion as medtronic buys covidien. we'll take a look to see where this stands, but again look at what happens with covidien shares on this news. >>> medtronics will move its base to ireland to reduce its global taxes. we'll talk to the chairman and ceo bill george to get his take on it later this morning. >>> and siemens and mitsubishi are prepared to join in an offer of alstom. instead, siemens would acquire the gas business and mitsubishi would look into the turbines. >>> and pipeline williams company is acquiring midstream for $6 billion. this will give them master limited partnership. andrew, a lot of activity out there. >> that is. it was a crazy, busy weekend. to believe all those deals are happening. plus we'll talk about the inversion step. this deal is different from the ones we have seen before in terms of why the tax implications are what they are. this is more about the money being abroad and not bringing it back. and we'll also talk now about other corporate news because a rough sunday was had by target. a

buying covidien. largest deal ever for medtronic and gives the u.s. company access to the portfolio of hospital supplies. moving on to another of our top stories. a new twist in the battle for alstrom's assets. caroline has been walking us through the details of how the company would divide up responsibilities. christopher joins us from paris. we do need your help this morning, christopher, because it is a very complicated deal. >> good morning. it is getting more messy. ist we expect from siemens due an offer and you deal today. offer a new deal today. from what we know, siemens would like to buy energy assets of alstom, but only regarding the gas turbine. mighting mitsubishi, they by 10% shares of alstom. messy, but wevery will know in the next hour. >> what do we know about the government's involvement? what is the french government doing on the sidelines? you might be very surprised. the minister is strongly supporting a deal between siemens and alstom. the weekendng over with siemens and mitsubis

corporate tax rate. >> what is at stake for covidien? talking -- there are lesser synergies, so i do not think we will see a repeat of pfizer-astrazeneca. done,ht be easier to get but for medtronic, this is something they have denied in the past, we will not do a deal just for tax purposes. premium ise, a 30% that along the lines of what we have seen in other deals? >> that does not seem to be unusual so far. there is huge demand. we know that medical device makers are banding together. >> thank you so much. details asmay unveil early as today. the board was scheduled to meet last night to approve the plan. caroline, what do we know so far and what will we hear later? >> good morning. it is a rather complex deal. let me explain the main points. on one side you would have siemens, who would get alstom's gas turbines. on the other side, you would have the japanese companies mitsubishi and hitachi combining with alstom. as part of this process, mitsubishi could take 10% stake in alstom and the french government could also take a stake in al

we think it's a win-win for both medtronic as well as covidien shareholders.n $14 bill chron of cash on their balance sheet, which is essentially using close to nothing and investing it in a company which has a yield of close to 6%. initial, there is substantial tax savings that come with this transaction. essentially through -- there's a valuation of about $8 billion attached to just the tax saving component of this transaction, and beyond that, we see cost synergies, which manage has indicated at 850 billion for now, which is just their initial estimate, and they have not even yet called out the revenue synergying, which can be substantial given the cross-selling opportunities. >> the -- that you took after this, is you were consulting your rating to fair value, but increased your price target. >> right. we obviously expect the stock to move up from an $82 price target, and we have the highest priced target on the street, very positive on the name, giving the access to free cash flow story that covidien has, so we've up -- basically increased our price targe

medtronic taken over covidien, this is a medical device and covidien up 21% at $42.9 billion deal ando-- by the way with this move move medtronic out of the country to ireland. then you have l3 communications buying tw telecom. that is a $5.7 billion deal. we are seeing both the acquires medtronic and tw telecom up almost a percent. it is action and active before today, but we know it has been a busy year for that. back to you. cheryl: thank you. we will see when a bit bit. sports mania is an understatement now in this country and in the past few weeks sports fans have been glued to their tvs watching the stanley cup, the nba finals, the u.s. open and now the world cup. who are the winners of the screen? to discuss which teams and players bring in the biggest bucks for retailers we are joined with a fox exclusive bite stephen deangelo 47 brand owner at a boston. i guess we can say that's a pretty big sports town. thank you for being here. to have been so wild three i can remember a month like this in years were semimajor sports events have collided. that has been great for business. >

you can see covidien up 21%, medtronic down about 1.1%. maker tw tell clom was bought by level 3. tw telecom trading at $39.27. level 3 up $1.79. sandisk is buying fusion-io. the price tag $1.1 billion in cash or $11.25 a share. fusion io trading at $11.26. sandisk also higher. lastly, williams company paying almost $6 billion to buy 50% of the energy producer access midstream partners. access midstream up 1.75% and williams company up over 18%. tesla is at session highs right now. the "financial times" saying its electric vehicles rivals nissan and bmw are in key talks with the company to talk about testing models. they are testing the crossover vehicle next year and shares are up bottom almost 9%. nuance communications was surging earlier this afternoon. dow jones reporting the company held talks with samsung and private equity firms about a possible sale. nuance is behind a new voice recognition application that you can use to place your domino's pizza order. our own domino, dominic chu will be trying out that app next hour on "the clos

covidien in buying a cash and stock deal worth nearly $43 billion.t transaction was unanimously approved by the boards of both companies. it does still need shareholder approval. the book -- combined companies would use covidien to avoid being taxed under it in u.s. law. oncell be "on the markets" again in 30 minutes. more "bottom line" is next. ♪ >> welcome back to the second line" on of "bottom bloomberg television. i am mark crumpton. the imf cut the growth forecast for the economy this year, and also said the federal reserve may have the ability to keep interest rates are zero for longer than investors expect. tom keene sat down with the imf managing director, christine lagarde, and asked about subdued growth. revised downward the 2014 numbers, but we do not inc. it will be a downward spiral. -- we do not think it will be a downward spiral. thever, we have revised growth trend on an ongoing basis from where it was on average in the past 50 years or so, to 2%. we have done that on the basis of the aging population and lower productivity taste on t

confirming it is buying covidien for almost $43 billion in cash and stocks. steph. had >> long term it makes sense. they get emerging market exposure. i like it, but at 29% premium, i think it's going to be hard to see synergies before 2016. >> level 3 communications agreeing to acquire tw telecom. $5.7 billion, josh. >>ist seen so much m&a, it's almost impossible to keep track of. it's a hedge fund favorite that's been bought. level 3 acting okay, not great. pretty heavy volume as well. but i think overall, if you're in these stocks, they continue to get acquired. there's probably going to be more deal, not less. >> sandisk acquiring fusion io, $1.1 billion, all cash, pete. >> we've been talking about the chips and how well they've been doing. also when you talk about the cash all the time in the tech sector. this is a great opportunity. fusion io is absolutely beaten like a pulp to the downside. this takeout value, a lot of people think that's not enough. they think the value of this company is higher. i'm one of those people. i think maybe there's either a compet

>> reporter: this is a big deal, covidien up 21%, medtronic pulling back, medtronic being the acquirer interesting here is they are saying certainly in the medical devices, world medical technology they really see complimentary strategies, synergies between these companies and why they should be together. but don't forget, if they are to do this and move forward with this, they would then move to ireland, right, where covidien's from. that would help them in the tax purposes area. in the meantime, they are rushing to do exactly that because they don't want congress to push through legislation which actually has been introduced recently that would stop them from doing that. back to you. melissa: interesting. we're going to see more and more of this. nicole, thank you so much. from the u.s. to every corner of the globe, money is flying around the world starting in the philippines where a local ice cream parlor is selling a sweet new dessert made with crocodile eggs. thicker and creamier than you could ever imagine. the eatery stumbled across the flavor, wait for this, after the crocodile

you have been monitoring medtronic's by covidien. is a east in ireland. deal and themous -- ofare price of 9322 93.22 friday. covidien, even though it is domiciled in ireland, it has offices in massachusetts. corporate tax identity will transfer to ireland. represents is a big increase in size of medtronic's medical device business. perhaps it would enter compete against johnson and johnson, which is the dominant force in that business, allow us to have more leverage in negotiating with hospitals and other medical providers. --t is the strategic region strategic reason behind this deal. >> what is up with this, with u.s. companies going abroad? 14 company since 2012 have gone abroad. are they going just to escape our taxes? >> you have two different tax issues and problems coming together. the drawn against going to try to lower the corporate tax rate. the other issue is all this offshore cash. medtronic, according to goldman sachs, has about $14 billion offshore. they will presumably be able to use a lot of that on this particular deal. going forward the

going on at the moment medtronic an american firm is trying to merge with the irish firm called covidien and in order to reduce their tax burden and they said that many are trying to cause borrowed heavily at home rather than repatriate foreign earnings and trigger any. tax payments to finance share buybacks and dividends with this deal it can use its foreign cash both to reduce its debt and to finance the acquisition itself engaging in quote hopscotched transactions that funnel cash from non american subsidiaries to the irish holding company missing out the american layers so they want to avoid all the american players but you know the thing is you look at these sort of companies that get to do this whereby they're all they're also using the might of the american military to extract the likes of t. typin t p p all these trade deals which benefit them they don't want to pay the taxes for the military that forces all these countries to sign these deals it's the chump that you is on food stamps going to wal-mart is the one cheering on the scoundrels on fox news and their patriotism and say

covidien makes hospital supplies like surgical staplers. this is about a tax inversion. >> how much cash is overseas for american companies? $2 trillion will stop >> and growing. >> general electric, over $50 billion. they are trying to put money to work. the question is again and again, taxnot cut the corporate rate in this country and let them bring money home? then they will not be pushed into these deals. but there is a happy dance in dublin. this is a vindication of their 20 your tax strategy. this says how utterly futile any kind of tax harmonization is going to be. germany has been begging ireland to raise tax rates, not going to happen. >> the u.s. scratches its head. those are our front page stories. tom, out to you. a conversation with ian bremmer is coming up. focused on agton rock, we saw that on the sunday talk shows. moving americans out of baghdad and out of the embassy. this is washington beginning discussions with tehran. odd weekend with reports of atrocities by jihadists. 2000 three. ian bremmer is president of eurasia gr

medtronic has agreed to buy covidien.s it enough to take the number one player, johnson & johnson? ofit just another case trying to move to the u.k. to pay lower taxes or is this strategic business? >> that is what we were saying before the announcement. saying they will not be paying lower taxes. one thing when we are listening to keep in mind is that they have about 21 billion dollars in cash overseas. that is one of the estimates we have a. the company is probably not the $21 have to pay a billion. it will be cash and stock so maybe they can use some of it to pay part of the huge tab. brought the money back to the u.s., it would be higher taxes. >> and he is but coming increasingly aware that it is problematic on capitol hill. we can only speculate. we definitely know congress is not happy about this. aree is legislation they considering to stop companies from doing this. we would not be surprised if they said it is not just any merging dell. one issue thing to note is we have seen about 20 of these deals, these emergi

you know, we've just had covidien earlier this week, beam, directv, hillshire, a lot of other deals. mergers. financing is incredibly attractive, and even if rates go up, it's still going to be attractive. so i think the deal making is going to continue for some time. liz: julian, are equities still, in your opinion from where you stand as this type of strategist that looks at derivatives and equity, the place to be? >> we definitely think so. and, in fact, the notion of higher interest rates is going to keep people pointed towards more m&a because the cost of financing is going to rise. so you're incentivized to put your money to work now rather than wait. liz: well, folks don't say that kevin did not warn you. energizer holdings and conagra are his next two picks for possible take of candidates. it's good to see you both. thank you so much. >> thank you. >> thank you. >> kevin drier and julian emanuel, nice to see you, thank you. ubc, u.s. equity and derivatives strategist. we've got the closing bell ringing in five minutes. the rise of the robots. we're not talking sci-fi, but the

is gyrating between positive and negative on news it will buy ireland-based medical devices maker covidiennow, wedbush analysts are calling it a very poor deal for medtronic shareholders. as it says there, quote, is a significant post-yield execution risk. shares down about 1%, well off its highs. it's one of the best performers on the s&p. you can see off its highs, still up, though, about 21% on the day. back over to you guys. >> all right. thanks so much for that. >>> coming up, never tweet alone. self-help for your 99 social media problems. google's nest is all grown up. and apple, twitter and yahoo! all in cannes along with our own john steinberg and kara swisher. "squawk alley" en france next. and i loved every minute of it. but then you grow up and there's no going back. but it's okay, it's just a new kind of adventure. and really, who wants to look backwards when you can look forward? my motheit's delicious. toffee in the world. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legal

we told you about medtronic buying covidien for about $43 million and in the process moving to irelandeast 40 other companies have done similar deals and some in congress want put an end to it. the top democrat on the house ways and means it in its tracks. thank you for joining us this morning. i need to ask you this question to begin with. orther it is medtronic pfizer, doesn't really matter. if you are the ceo of an american corporation looking at the u.s. corporate tax rate at 35% and seeing an opportunity to reduce that, however you do it including through an inversion deal, wouldn't you do the same thing? >> first of all, medtronic is not playing -- not paying 35%. they are paying about half of that. >> congressman, that is partly because medtronic has also been very active and determined to become a more tax efficient company, which has helped it to reduce its tax rate to 18%. but as you know, there is another appeal to the inversion deal, but -- which is unlocking or releasing the so-called overseas profits that are isapped overseas," and that really what medtronic has in its si

astrazeneca was a reluctant partner but covidien is not. >> that is very different. think companies have to to look at their long-term shareholder value through great strategy and creating the technology in the united states and settling it all over the world as apple has done and building strong companies here. i'm a big advocate of that and have to do what they have to do. within the law. that's what medtronic is doing and you can criticize them but they are operating within the law. that's what we are called to do and we have to serve our long-term shareholders. i favor that but i do not favor going in and coming back r&d or shipping things overseas. more companies may look at this and say maybe we should do something like this. it could force some kind of action washington. >> until there is action, that option is on the table. thank you for joining us. miter, thank you all for being with us. imf has ame back, the new forecast for the u.s. economy and it is not up beat. you will hear from christine lagarde. barack as thebout u.s. desperately tries to figure thewh

to be watching or at least taping at three in the meantime medical device maker medtronic buying covidienporate taxes, other companies sure to follow. investors have been calling out for more details about alibaba's ipo, the chinese e-commerce giant getting out some information finally. we will bring it you and go team usa, we were just talking about that was stuart, it is the first match for the american world cup today. the cheap world business officer from new york city will be joining us shortly. in the meantime, investors have been asking for more details on the chinese internet company alibaba, the fact that it's going public. it is huge as we have been covering bigger than amazon and ebay combined to read the e-commerce site releasing data points, sales figures for the shopping site and then it list of power players from inside the company. nominati

we've been reporting the last couple of days about a deal between medtronic and covidien, something called, something that's known as an inversion deal. an american company looking to buy an offshore company because the tax rate is lower offshore. how do you view deals like that? are those okay? >> well, you know, really deals are deals, and they can be done. i think this one in particular in connection with some others that have occurred as well indicate that something is probably wrong with our tax system. i think that it's really unfortunate that the, sort of the amount of earnings that exist overseas have not been able to be repatriated in a way that would work for our country's economic growth. so, you know, i think this is a signal that some kind of business tax reform should, you know, should be taken quite seriously. >> well, so what's the solution, and what are the prospects of achieving that? >> so i guess in terms of the solution, you know, i'd like to see business tax reform plan that essentially lowers the corporate tax rate but sort of spreads the base out so we, essentially,

a day after the covidien deal, they are up. a positive article in the "wall street journal."flix, estimates raised, assumed overweight. talk about high frequency trading. i have news. it's not one, it's three high frequency trading hearings going on in the next several days. today you heard from the u.s. senate permanent subcommittee on investigations. tomorrow, the senate banking committee, subcommittee on securities, insurance and assessments will chair another hearing on the impact on the u.s. economy and securities markets and high frequency trading. soon, representative scott garrett, the chairman of the financial sers vises subcommittee on capital market wills hold his subcommittee has jurisdiction over the s.e.c. in a way that's more important. i understand s.e.c. people will be testifying at the hearing. the whole point is to get a response from michael lewis. i will tell you what's interesting about the hearing today. a lot of people saying that carl levin is the chair but the fireworks may come from the ranking minority member. of course that's john mccain. keep an