Covidien sued over sale pay-off claims

Covidien plc, the Irish maker of surgical accessories and operating-room products, was sued by a shareholder over claims the company’s planned sale to US competitor Medtronic will enrich directors and managers by almost $96 million (€72.7m) in cash at the expense of investors.

In June, medical-technology company Medtronic agreed to buy the Dublin-based Covidien for $42.9 billion in cash and stock to expand its portfolio of products sold to hospitals.

As part of the deal, Medtronic, the world’s biggest maker of heart-rhythm devices, would move its legal address, though not its executive offices, to Ireland and lower its US tax bills.