Covidien Plc shares rose 6% in early trade Friday, after Medtronic Inc. unveiled plans to use about $16 billion of external financing instead of cash from its overseas operations to fund part of its $43 billion purchase of Covidien. Medical device maker Medtronic said the other terms of its acquisition agreement remain unchanged. The company reiterated that a new Irish holding company will serve as parent company for the combined entity, and will be listed on the New York Stock Exchange. Medtronic will maintain its headquarters in Minnesota. The deal has come under scrutiny because of the decision to locate the holding company in Ireland, which will lower the company's corporate tax bill in a so-called inversion. Medtronic shares rose 3.8% and are up 14% in the year so far, while the S&P 500 has gained 6.4%.
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