On 08 May 2009, Covidien Ltd. (Covidien) announced its intentions to acquire VNUS Medical Technologies, Inc. (VNUS) for approximately US$440 mn, net of cash acquired. The acquisition is inline with the company’s expectations to expand inorganically through strategic acquisitions. We believe this acquisition will strengthen Covidien’s presence in the vascular product market. Consequently, our positive outlook for the company remains unchanged. Hence, we maintain our BUY rating for the NYSE common stock and will reassess our target price and rating in our 2Q 09 update report. We maintain our BUY rating for the European stock based on our expectation of a significant positive currency impact on the European stock over the medium term and our positive fundamental outlook for the company. We will reassess our target price and rating in our 2Q 09 update report.

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