AbbVie, Shire agree on $55B combination
Source: AP-EXCITE
By TOM MURPHY
The drugmaker AbbVie has reached a roughly $55 billion deal to combine with British counterpart Shire and become the latest U.S. company to seek an overseas haven from corporate income tax rates back home.
The companies said Friday that Shire shareholders will receive cash and stock valued at about 53.19 pounds ($91.07) for each of their shares. They will control about 25 percent of a new company created as part of the deal. AbbVie shareholders will hold the remaining 75 percent.
That new company will be incorporated on the British island of Jersey, where Shire currently is headquartered.
U.S.-based multi-national companies looking to grow through acquisitions have been searching more often in recent years for these overseas combinations known as inversions. The deals have raised concern from President Barack Obama and members of Congress because they can cost the United States billions of dollars in tax revenue.
FULL story at link.
Tax dodgers!!!
Read more: http://apnews.excite.com/article/20140718/us--abbvie-shire-ab80db0ab8.html
