Scalper1 News
Pfizer ( PFE ) and Allergan ( AGN ) will announce Wednesday morning that they are mutually ending their $160 billion merger agreement after the U.S. Treasury unveiled new rules to curb tax inversion deals Monday, according to widespread reports. Ireland-based Allergan stock closed down 14.8% to 236.55 on the stock market today amid concerns that the new rules imperiled the deal. Pfizer rose 2.1% to 31.36. U.S. companies have a strong incentive to redomicile overseas to reduce their exposure to America’s unusually high corporate tax rates and global reach. Pfizer did not want to alter the terms of the deal given there would no longer be tax benefits. The deal had a $3.5 billion breakup fee, but it drops to $400 million if they are adverse changes. Scalper1 News
Scalper1 News