Medtronic

Executive Summary

Fiscal year 1999 first quarter sales and earnings will be below company and analyst estimates, the company reports Aug. 6. Stock in Medtronic fell 5-3/4 (9.5%) points on Aug. 6 to close at 53-1/2. Complete results for the three months ended July 31 will be reported Aug. 18. The firm attributes the lower-than-anticipated results to the absence of the Kappa 700 pacemaker system and the Gem DR defibrillator system on the U.S. market, where tachyarrhythmia management sales declined 5%. Separately, a registration statement filed with the Securities & Exchange Commission covers a 12.5 mil. share offering in connection with the company's planned acquisition of Physio-Control in a pooling-of-interests transaction valued at $538 mil. ("The Gray Sheet" July 6, p. 3). Based on current stock prices, the offering would raise about $750 mil