Medtronic / Covidien Tax Inversion Acquisition
« on: February 17, 2015, 11:03:06 AM »
We've had a number of IAM users that own Medtronic shares request help with the Medtronic / Covidien Merger Acquisition.  This transaction is not a 'merger' in the normal sense, since this is a taxable event to the owners of Medtronic shares.  As the article below explains, and may be of help to our users, Medtronic shareholders need to treat this as a taxable event because Medtronic's shares will be liquidated and then replaced by new shares in the cash-and-stock-based deal.

The proper way to enter this into IAM is to first sell the Medtronic shares using the closing price of Medtronic on 01/23/2015 of $76.95.  Then purchase new shares of Medtronic using this price of $76.95 to establish the new cost basis of your Medtronic shares.

As always, verify this information by consulting with your tax advisor, and the investor relations department offered on the Medtronic website: