Covidien Up 20%: Does This Deal Make Sense?

Covidien  (NYSE: COV  ) and Medtronic  (NYSE: MDT  ) announced a tie-up over the weekend for $42.9 billion, and Covidien promptly shot up over 20% today on investor optimism around the deal. And with Medtronic offering a 29% premium to last Friday's close and both boards of directors behind the proposal, there appears to be much reason for optimism about the deal going through.

But we're long-term investors, so the big question for us is also the simplest: Does this acquisition make sense?

In the video below, from Market Checkup, the Motley Fool's health care-focused investing show, health care analysts Michael Douglass and David Williamson give their answer.

The deal's the big news today, but could this opportunity be even bigger?
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that will revolutionize not how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. In order to outsmart Wall Street and realize multi-bagger returns you will need to Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster, CLICK HERE NOW.

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