J&J's still searching for redemption and its hoping Synthes is the ticket. Although the $19.7 billion acquisition, which got the greelight today, is raising eyebrows for its tax evasion methodology. J&J is hoping to add 3-5 cents per share to its 2012 earnings, reducing the impact of its OTC product mess.
J&J will buy Synthes via an Irish subsidiary, so it can buy the firm with funds that haven't been repatriated and avoiding U.S. taxes.
The Synthes acquisition makes sense for J&J, but we've spent so long by being disappointed by J&J, it's like waiting for the other shoe to drop.