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Bill Frels Comments on Medtronic Inc

Healthcare company Medtronic, Inc. ( MDT ) detracted slightly from performance during the period. Pending a shareholder vote later this year or in 2015, Medtronic is expected to merge with medical device supplier Covidien Plc and change its legal domicile to Ireland. Your Growth Fund portfolio managers are pleased to report that we have completed our valuation for Medtronic. As of October 7, 2014 we believe combined Medtronic/Covidien to be $8 per share more valuable than shares of Medtronic alone.

As of September 30, 2014, the market value of the Growth Fund's holding in Medtronic was $24 per share greater than its cost basis. We estimate that our typical shareholder, that holds the Growth Fund in a taxable amount, will experience about a $6.00 per share tax liability. We do not offer tax advice; each shareholder should consult a tax advisor about his/her particular circumstance. Providing that there are no significant changes, our current thinking leads us to believe that voting for the merger is in our shareholders' best interest. We will keep you posted as the voting date is finalized or if we learn of any other developments regarding the merger plans.

From Bill Frels ( Trades , Portfolio )' Mairs & Power Growth Fund Q3 2014 Commentary.About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .

This article first appeared on GuruFocus .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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