Titan Medical Inc (TMDIF)

[RockoTaco]

The covidien/Medtronic deal looks almost complete (pending Irish court approval - news today) and wouldn't be the least bit surprised to see them enter the mix for a surgical robotic platform (hopefully Titan but possibly someone else). They also were going to use $13.5B in cash on the deal but recently decided against that and are instead going to use the credit market (issuances of corp bonds as well) to finance the deal...which leaves them with that $13.5B in cash in hand.

On top of that, Coleman Lannum has a nice consultation position with Bertner and he has been right in the middle of one of the largest h/c mergers ever.

Someone on the board was talking to Randall and he mentioned that there would be some big, positive news towards the end of January. Maybe we assumed he was talking about Titan announcing some big positive news but maybe it's possible that he meant that the big Cov/Med deal would be done which would clear they way for Cov/Med to pursue a surgical robotics platform.

My opinion is that a buyout within 12-16 months will take place and if that is the direction Titan is planning why would they want the PPS to go up and have warrants excercised? It would seem to me that if you get a agreed upon purchase price from buyer (i.e. $4B) that they would prefer to have 100M shares outstanding ($40/share) rather than 145M outstanding (@ $27/share).