NEW YORK (TheStreet) -- Covidien (COV) surged to a 52-week high today of $92.68 on Monday after rival medical device manufacturer Medtronic (MDT) announced it would buy the Irish company for $42.9 billion in a cash-and-stock deal.
Medtronic said it would pay $35.19 in cash plus 0.956 shares per Covidien share. This represents a 29% premium on Covidien's Friday closing price of $72.02.
The combined company would have its executive offices in Dublin but would operate in Minneapolis, where Medtronic employs more than 8,000 people.
For more detailed analysis on this story, read Andrew Bulkeley's article here.
The stock was up 19.13% to $85.80 at 12:45 p.m. More than 51.9 million shares had changed hands, which dwarfed the average volume of 1,943,330.
Separately, TheStreet Ratings team rates COVIDIEN PLC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate COVIDIEN PLC (COV) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, notable return on equity and reasonable valuation levels. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows: