A four-member subcommittee of the Minnesota State Board of Investment has decided not to cast votes when Medtronic and Covidien shareholders decide Tuesday on whether to approve a multibillion-dollar billion merger of the two companies, according to the Star Tribune of Minneapolis.
Critics on the board were concerned about supporting a deal that allows Fridley, MN–based Medtronic to avoid paying U.S. taxes by moving its official headquarters to Ireland, where Covidien is based. Meanwhile, Minnesota Gov. Mark Dayton's office supports the deal because Medtronic officials have personally promised the governor that the merger will bring another 1000 jobs to the North Star State, according to the Star Tribune.
Medtronic and Covidien shareholders vote Tuesday on the deal, which the Star Tribune now pegs at $48 billion.
