More on Pfizer. As we said the government will attempt to exert pressure on the company one way or another and in the process send a message to any other companies possibly entertaining an inversion deal.
There have been a flurry of pharma and biotech mergers this year, already surpassing last year’s record of $220 billion in deals, according to data compiled by Bloomberg. Buying Allergan, which has its legal domicile in Dublin, could let New York-based Pfizer relocate outside the U.S. for tax purposes, a transaction known as an inversion.
“We struggle to see what the Treasury can do to specifically curb” a combination of the two companies, Citigroup Inc. analysts said in a note Wednesday. Still, the “political noise” that would surround Pfizer’s relocation “constitutes the most material hurdle to consummation of a transaction of this nature.”
Allergan rose 3 percent in early trading after closing at $310.80 in New York Wednesday. The shares had initially dropped in extended trading after the Treasury’s letter, which said the department is reviewing ways to address overseas acquisitions and plans to issue guidance later this week.
Pfizer Said Near Agreement to Buy Allergan in Biggest Deal
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