Titan Medical Inc (TMDIF)

[66Mustang]

More profitable? Possibly - or maybe not. But an equity stake would foretell their intentions, as it did with Mazor. Medtronic did not like the outcome with the Mazor deal for a couple reasons. First, share price shot up too much and some folks bought Mazor shares in the mid to upper $70's when buyout was in the $50's. PPS overshot the goal, which certainly wasn't MDT's intention. Second, Geoff Martha recently noted that they had issues with the Mazor product line which needed to be resolved after acquisition. He hinted that their preference moving forward would be to acquire pre-market growth and then grow it organically under Medtronic; this appears to be backed by his public disparagement of the Mazor product.

I guess it was more profitable in the Mazor scenario for people who SOLD their shares at $78 but those buyers got screwed, and the sellers seemed to be in the minority. I don't think Mr. Martha wants it to play out like that again.

Therefore, I am not "predicting" acquisition at any particular time such as in the next 4 to 6 weeks, but I am saying that I personally believe it would be the RIGHT thing for Medtronic to do, based on the two reasons stated above and the reasons I put forth in my prior post.


Message in reply to:
As always thank you for your insightful posts. However, don’t you think that an equity stake by Medtronic into Titan (similar to the Mazor/Medtronic deal) would be more prosperous for shareholders than a straight buyout after Milestone 4?