Ireland - Bermuda firm gets OK to hold $17.8bn assets here.... [2009-06-06-30 Independent.ie]

http://www.independent.ie/business/irish/bermuda-firm-gets-ok-to-hold-178bn-assets-here-1797257.html

Bermuda firm gets OK to hold $17.8bn assets here

By Tim Healy

Tuesday June 30 2009

A BERMUDA-based international medical supplies manufacturer is to be allowed hold its $17.8bn (€12.6bn) in assets here.

Covidien plc successfully made the unprecedented application to the Commercial Court yesterday because of proposed changes in the US tax laws.

It is expected to be the first of several by other companies similarly concerned about the proposed changes.

Mr Justice Peter Kelly yesterday made orders confirming the transfer of the headquarters and most of the assets of Covidien Ltd, the former parent of Covidien group, to Covidien plc, which was incorporated here in January and became the new parent company of the Covidien group on June 4. Covidien Ltd was incorporated in Bermuda and was listed on the New York Stock Exchange.

The group manufactures medical devices and supplies, diagnostic imaging agents and pharmaceuticals. It had revenues of almost $10bn in 2008 and has more than 41,000 employees in 59 countries.

The application arises from the tax changes proposed by President Barack Obama and is expected to be the first of several by a number of international companies who are concerned about their implications.

Lawyer Paul Sreenan, for Covidien, told Mr Justice Kelly a similar application was expected to be brought shortly by Ingersoll Rand.

The case arose after Covidien Ltd undertook a scheme of arrangement under Bermuda law in which Covidien plc became the new parent company of the group and Covidien Ltd became a subsidiary of the Irish based company.

The scheme, involving a reduction of share capital by $13bn, was approved by Covidien's shareholders in late May and became effective, after approval by the Supreme Court of Bermuda, on June 4 last.

The court heard yesterday the Covidien group made a gross profit of $5.3bn in the year ended September 26,2008.

- Tim Healy

--

©Independent.ie