and while medtronics made a deal to buy ireland's covidien. it will comment on any potential impact on its acquisition once it finished its review. renegotiations could be risky analysts said. larry beagleson of wells fargo said medtronic may seek to restructure its deal including asking for a lower price and there's risk it could fall apart if the two sides can't agree. medtronic may also look to use more stock and less cash, reuters reported. a breakup fee of $850 million in the deal falls through. and while the u.s. acts to stop inversions, companies say a change to the country's tax code is what's needed. >> they need comprehensive reform that really does level the playing field for u.s. companies. because u.s. companies are at a disadvantage relative to foreign companies because of paying higher taxes in the u.s. >> until then morningstar's damian conover said companies are likely to continue to pursue inversions even if the u.s. succeeds in making them a little more difficult. >>> and finally tonight, forbes magazine out with its annual

medtronic has $13.5 billion outside the u.s.y to use that in the covidien deal will come into question. >> eamon, thank you very much. >>> straight ahead, let's check the markets. we are down 20 points on the dow. we'll talk more about the markets after this break. when fixed income experts work with equity experts who work with regional experts that's when expertise happens. mfs. because there is no expertise without collaboration. (vo)solver of the slice.pro. teacher of the un-teachable. you lower handicaps... and raise hopes. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (pro) nice drive. (vo) well played, business pro. well played. go national. go like a pro. ♪ eenie. meenie. miney. go. more adventures await in the seven-passenger lexus gx. see your lexus dealer. ugh. heartburn. did someone say burn? try alka seltzer reliefchews. they work just as fast and taste better than tums smoothies assorted f

medtronic obviously sold off 3% today. if this stock holds $60, which had been previous tops a couple times over the last couple years, i think you got to buy medtronic with both hands. they're not going to knock the cover off the ball in terms of earnings but it is not crazy expensive at 14 times earnings. this is a name you want to buy regardless of what happens with any of this inversion news. >> i would just add this smacks a little bit about the environment toward the end of '06 and '07 from a sentiment standpoint when lbos start ared to become less attractive. when you think about what are some of the things that fuel late stages of rallies, it is m and a, the kind of animal spirit. if this is one thing that if karen's right and the community starts to feel some pain, people peel out, not good for sentiment in general. it is also one of the legs of the bullish argument that there needs to be more consolidation in this market. >> to me, it is a small issue but it is a bigger issue that could have longer term impact. w

medtronic down, aiming to buy covidion for $43 billion and rebase to ireland. and looking to buy shire for 55 billion, they are down 2%, and uk-based astrazeneca fell nearly 5%, you may recall that pfizer tried to buy it for $5 million but was rebuffed. amon javers has more. amon, what are the new rules the treasury introduced, they are more complicated? >> yes, they're using terms like spin version and what the treasury is doing is changing rules on how companies have engage in inversions and blocking the most common tactics. the idea is to make inversions a lot more expensive for companies so they will choose not to do it. what they could not do is block inversions altogether, taking an act of congress to change the law. they don't have the votes on capitol hill to do that. it doesn't seem they are doing anything now between the election in november. we have to move now, treasury took the action yesterday and this will be effective as of yesterday. >> meg, you have been on the phone all day contacting companies with deals. what do the new rules mean for them,

tax inversion rules could prompt medical device maker medtronic to renegotiate the 42.9 billion dealted by reuters. the u.s. treasury made it difficult for american companies to move their tax dollars abroad which would make buying comidien more expensive for medtronic. >>> the japanese firm softbank is looking to add shrek and po to their lineup. nevertheless, kate rogers is at cnbc hq with more on this story. >> you guys do not know who po is? >> tell us who is po. >> he's from "kung fu panda." the creator of shrek and "kung fu panda" says softbank is offering $32 a share up $10 a share from where dreamworks closed on friday. that's below the high of $36 that was reached last year. the deal would give softbank control of dreamworks. they have had a number of hits in their franchise and has blazed a trail in china where it signed a joint venture deal with three state-owned media companies to produce movies and tv shows and is building a 2.4 billion entertainment complex in shanghai. dreamworks was spun out of the studio started by david geffon and steven spielberg in 2004. they woul

medtronic, abvi. unclear whether this will apply to burger king.t the tronic's -- t ake a look at medtronic's purchase of another company. it would be penalized by treasury. this year there has been a remarkable and out of m&a in the pharmaceutical industry, $178 billion in acquisitions. some of those deals will be put on ice. some are already underneath the wire. they call them plasters in germany. we will not get caught up in the semantics. let's talk a little bit about what is going to happen at a larger scale. many people in the usa the reason we're doing this is because the corporate tax system in the u.s. does not work. that is where you should be putting your attention. fix that and you fix this problem. that both thes is obama administration and many members of congress, including republicans and democrats agree with that. there's a broad agreement that the u.s. tax situation needs to be remedied. the top rate is 35%. in reality, companies pay much less. you cannot compete when other countries, ireland is at 12.5%. they cannot get from a to

medtronic, ag, deal with google's health startup, what companies and our world will be affected?- in our world will be affected? this iswill argue that fundamentally based overseas and we have not seen a lot of tech companies do this because the basic rules require that most of your business operations are in foreign countries. there is not a lot they could do. from your perspective, is that the worry? biotechis spread from to burger king, which was a wake-up call. could this spread to lots of other industries? >> absolutely. this would have a chilling affect on all of the activity out there. thatreasury response is this is targeting companies that do this for tax purposes and not real business purposes. they are making the case that cross-border mergers are good and they will continue to support those. they think the rules are tight enough that they can effectively transactions going forward that they did not think met the test. >> some companies, like google and yahoo!, having criticized for years for keeping money overseas. this is different, right? about doing an acquisition

taking a look at medtronic. and as well shire abbvie.aking of m&a professionals, lawyers and bankers who put these deals together they're coming. we've seen burger king recent lip i'm hearing any number of inversions on the drawing board, typically in pharmaceutical land, but not just in that area. >> one of the reasons why, you see a campbell's, the ownership, the people from camden sold a big stake. when you see campbell's and think, what the heck, why isn't that stock down 10%, the answer is, i don't know, probably a lot of companies that want to do something in that space. i just find over and over again, every time you get negative, some deal not talking about multimedia game deal, talking about big deals that you mentioned, make me think, you leave the table and then suddenly you get a combination of the tesla/gopro mobile-i and deals motivated and you say i left the table because i heard that the fed was going to raise and, you know, going to raise 2012. >> keep your eyes open as alibaba prepares to go public with the massive ipo,

medtronic is one of about five in the space trying to invert and unclear how to affect all of them but a reuters report out today and analysts speculating that they could try to renegotiate the terms of its deal. if it can't get the tax benefits and maybe seeking to pay a lower price or change the mix of stock and debt and there's question marks over what could happen and other deals, as well. >> yep. and, les, do you think companies just roll over and accept this change in the rules or any legal recourse here? >> well, without being constitutional scholar, i would say it's difficult to fight the u.s. government, so i think whatever rules come out the companies are just going to deal with. as meg was saying, there is the ability potentially to renegotiate these deals under the new rules that have just been promulgated next week. >> the question then, meg, is it worth it for a company to have renegotiate the deal say, pay more in stock or taxes and a fundamental case for the deal going through without the big benefits that it would have gotten from using the overseas cash piles to make

among those companies, medtronic, chiquita brands, applied materials and now burger king, whose stock lost about a half billion dollars in market cap today. while cable networks and all forms of connectivity were ablaze with washington outrage over the burger king deal to buy canada's tim horton's fast food chain. burger king's $11 billion acquisition would create the world's third largest fast food company, one that would move its headquarters from miami, florida to oakville, ontario, just south of toronto but well north of the highest corporate taxes in the world. politicians and media mavens immediately looked to canada's combined local, federal and state tax rate. it's 26%. that's a third less than the u.s. combined corporate rate of 39%. but the story is far more complicated than that, doggone it, and add to the deal the revered warren buffett, democratic donor and advocate of higher taxes, whose berkshire hathaway financing is putting up just about a fourth of the total deal. the same buffett who is always crowing about rich people paying more taxes, investing in america, say it

companies like burger king, medtronic and the drugmaker abbvie have announced plans to relocate afterbuying foreign firms. critics say the rules announced monday by treasury secretary jack lew are not enough to end the practice, without involvement from congress. the obama administration is increasing the u.s. nuclear arsenal despite president obama's public championing of disarmament. when obama won the nobel peace prize in 2008, the nobel committee cited his steps toward reducing nuclear stocks around the world. but the "new york times" reports obama is overseeing extensive rebuilding of nuclear weapons at home, including at a new plant in kansas city, dedicated last month, which is larger than the pentagon, and employs thousands of people. according to a recent federal study, the u.s. is poised to spend up to $1.1 trillion over the next three decades on modernizing nuclear weapons. this is democracy now!, democracynow.org, the war and peace report. i'm amy goodman with aaron matÉ. >> welcome to all our listeners and viewers from around the country and around the world. the u.s. has

. >> next up, merrill lynch resuming coverage on medtronic also down. >> they're bullish. okay?arget more bullish. 75 bucks, more than 15% upside to mdt and caught up with the controversy of inversions. people, by the way, angry that they're reinbursing top executives of $63 million of personal taxes. editorialize for a second. if you're sick of all the negative headlines, getting rich anyway, don't get reimbursed for the money you owe on a deal to send taxes offshore. >> doesn't look good. bad optics. >> now i need a stint. >> boston properties up next. capital one securities more bullish. the same story. down by 1.17%. nothing can catch a break today. >> they can't. take the calls with a grain of salt. the boston properties up to over overweight. target boosted to 135. 17% upside stock. target 6 buck less 129 and still $15 on average above the current price. people bullish on boston properties which owns properties in boston. >> really? >> among other cities. >> not australia? >> they might. >> next up is heating and cooling company lennox with an upgrade and also not reacting

they have the who's who, they have people like cisco, ge, medtronics, goes across a wide swath of businessesl. obviously, you mentioned mobile telephony, but the company's going to earn close to a dollar next year. it's a december fiscal year. the bottom line is they're still growing the top line at about 10%, and the stock's 9.5. it's a 9.5 pe, it's deleveraged. the debt equity ratio's only .19, and terms of free cash flow, almost dollar for dollar in the first six months. liz: right. always a great sign to have free cash flow, and that stock as we look at it up about 29% over the past year. this i get. i'm a little confused about your second pick because it's winnebago which, to me, is a discretionary income, certainly, but when you look at winnebago, i guess you could say it's a boomer play, but why do you like a name? it's down 13% year to date, up 10% year-over-year. >> absolutely. it's down from 32. we just started buying at the 23, $24 level. there's about 1.85 in excess cash on the balance sheet with absolutely no debt. they do earn 25% on equity, and for each incremental dollar of r

i do not know how much it will actually affect medtronic. they have a lot of finance deals.est borrowing is less than 1%. i would have to take a wait and see. i would not advise them now until i see all the rules. i think companies will look at the option and there will be lawsuits. i think there will be lawsuits to test the rules and see how they come out. it just creates more uncertainty. maybe that is what the administration wants there it maybe they want that right up until the election in november. i am not sure but it is not a good ink. if you look, almost all the action throughout the business community are punitive. they're going after the .inancial service companies they are preventing energy companies from expanding and shipping natural gas overseas. one after the other. everything is punitive, rather than trying to grow our great company. i'm in favor of growing great companies. they will actually invest more in the u.s. as a result of the able to do this deal. >> to be fair, the fact that we do not have comprehensive tax reform is not solely the administration's

it's weighing on london based smith & nephew which has been the subject of takeover talks of medtronicthere's concern that we will see a pushback on these tax inversion deals. to get more on that, let's brick in tony dwyer. tony, m&a has been one of the factors that has been providing a boost to u.s. stocks. word about the white house might try to push back on these tax inversion deals. what do you think that will do to broader sentiment around the u.s.? >> it may have a temporary impact. but ultimately, it comes down to the credit markets. is credit available? what is creating this m&a, the stock buybacks which help earnings per share. all of that is coming from corporate credit. as long as companies are able to borrow from investors and borrow from banks, that's why i'm so bullish. as long as money is flowing, you ultimately have a better economy and better earnings. >> you mentioned share buybacks, even though it's something by chief capital. surely that's knot not sustainable. it's false increased roes and it's not going to continue. >> and it's typical of every part of the cycle.

medtronic has $13 billion of cash outside the u.s.okyo's restaurant and headquartered in the netherlands. it has $2.4 billion offshore. geologic says 13 inversion deals worth $178 billion have been announced since the start of 2013. moodys says non-financial u.s. companies hold a total of $950 billion in overseas cash while accessing that money is not impossible, companies are reluctant to do so because of repatrioting it would trigger a u.s. tax liability. remember, walgreens had considered a tax inversion by buying the rest of the drugstore chain alliance. but they decided against that. the wall street journal reports that wall greens is giving access to the jana that pushed for the inversion. the shares fell 15% in august but have come back since then. a mind-boggling issue, a large of huge numbers in a tax inversion issue. >>> the british government is urging the u.s. supreme court to review an appeals court decision over the 2010 gulf oil spill. that ruling last week found bp was, quote, grossly negligent and reckless in the spil