Large companies like Actavis have done it, small companies like Auxilium have done it, and huge companies like Medtronic have done it (and Pfizer wants to do it). Now count mid-cap specialty pharmaceutical company Salix Pharmaceuticals (NASDAQ: SLXP ) is among the companies using M&A to shift their formal headquarters to a country with a lower tax rate.
While there's more to Salix's merger with Cosmo Tech
than just a tax inversion, that's the value driver to the transaction.
This move appears to add about 5% to 10% to Salix's value, but it also
makes it less likely that the company gets a buyout bid of its own, and
that may be disappointing to some investors.
Read the full article here:
Fleeing Taxes, Salix Pharmaceuticals Moves to Ireland
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