Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : AMERICAN BIOMED, Minimally Invasive Technology (ABMI) -- Ignore unavailable to you. Want to Upgrade?

To: Ray Tarke who wrote (2160)	11/14/1998 6:12:00 PM
From: Jeffrey L. Henken	Read Replies (1) \| Respond to of 2887

I can't get used to seeing the numbers from Edgar before there is an official press release. I'm sure we will some other details in the actual press release. I agree with your assessment on the much needed financing. If done right it just might blow the lid off this stock. Regards, Jeff

To: Ray Tarke who wrote (2160)	11/30/1998 9:48:00 PM
From: Jeffrey L. Henken	Respond to of 2887

MDT sure see lots of reason to find value in this industry: FOCUS-Medtronic to buy Arterial for $3.7 billion (Adds analysts comments; updates share price) By Kevin Drawbaugh CHICAGO, Nov 30 (Reuters) - Medical technology giant Medtronic Inc. (NYSE:MDT - news) said Monday it had agreed to acquire Arterial Vascular Engineering Inc. (Nasdaq:AVEI - news) for $3.7 billion, forming the world's largest stent manufacturer. Stents -- small wire-mesh tubes that support coronary blood vessels weakened by disease -- constitute the fastest growing market in the $130 billion world medical devices business. Santa Rosa, Calif.-based Arterial Vascular is one of a handful of firms riding a powerful wave of growth in stents -- a wave that Medtronic will now be able to jump onto. Medtronic, of Minneapolis, is the world's largest manufacturer of pacemakers and makes many other medical devices, but it's stents have so far been also-rans. With that in mind and with Arterial Vascular's stock price beaten down since mid-September, Medtronic moved decisively to acquire its smaller rival less than a month after agreeing to buy Sofamor Danek Group Inc. (NYSE:SDG - news), which specializes in spinal implants, also for $3.7 billion. The Arterial Vascular deal is the fifth major transaction since July for Medtronic, not previously known as a major consolidator. The deal calls for exchange of $54 of Medtronic stock for each share of Arterial Vascular in a pooling-of-interests that would be tax-free to stockholders. Arterial is expected to boost Medtronic's earnings per share in its current fiscal year by 7 percent to 8 percent, and more than that in subsequent years, Medtronic Chief Executive William George told Reuters. Some one-time charges against earnings will be incurred on cost-cutting, including plant and sales force consolidation. ''We will be looking to wind up with fewer facilities than we currently have ... also we'll be bringing the sales forces around the world together,'' George said. The two firms have about 650 sales people and, after consolidation, George said, ''We'll field something in excess of 500 people.'' Arterial Vascular Chief Executive Scott Solano will report to Medtronic President Art Collins and assume responsibility for the combined vascular businesses, the companies said. ''AVE will instantly place Medtronic in a leadership role in the ever-expanding stent market ... AVE represents an excellent cultural fit,'' said medical technology analyst Rachael Scherer at brokerage and investment bank Dain Rausher Wessels. Medtronic said the deal is subject to customary conditions and is expected to be completed in 90 to 120 days. ''This is a great deal for Medtronic,'' said Steven Halper, medical technology analyst at investment bank and brokerage Donaldson Lufkin & Jenrette. ''They've upped the ante here in terms of being very aggressive in pursuing acquisitions.'' Medtronic stock closed down $2.312 at $67.687 on the New York Stock Exchange, while Arterial Vascular closed up $16.50 at $48.875 a share on Nasdaq. The share prices of two other top stent makers were down, with Guidant Corp. (NYSE:GDT - news) ending 93.75 cents lower at $85.812, and Boston Scientific Corp. (NYSE:BSX - news) down $1.812 to close at $49.50. ''Medtronic is all but out of the interventional cardiology business and appears to be buying AVE for its ability to develop the best-in-class product line that is needed in order to compete,'' said Robert Faulkner, medical technology analyst at brokerage and investment bank Hambrecht & Quist. ''The price and premium (being paid for Arterial Vascular) are high relative to recent trading ranges. We do not know whether there were competitive bids, but the price makes us think so,'' Faulkner said. biz.yahoo.com Looks like MDT is really expanding. In my opinion once the Omnifilter prototype is done ABMI will really be a prime acquisition target. Regards, Jeff