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Subject:  MDT spinoff of Physio-Control Date:  1/31/2007  12:12 PM
Author:  djw234 Number:  100 of 120

The spin-off, expected to be completed in the first half of Medtronic's fiscal year 2008, which begins May 1, will occur as a tax-free distribution to Medtronic shareholders of all Physio-Control shares. Medtronic expects to list the shares on the New York Stock Exchange.

My questions concern the reasons why to spinoff. I'm sure margins on their product, AED's (automated external defibulators (sp?)), have been reduced dramtically since their intro. many years ago. I wouldn't be surprised if there are imitators mfring. overseas at tiny margins relative to US costs. Also it being a serious (class 1-I think?) medical device there has to be a ton of liability and maybe that has been problematic for them, particularly dealing with users that are not medical pros.
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