NEW YORK, N.Y. – Allergan’s stock is down 20 per cent with the U.S. aggressively pushing its campaign to shut down so-called tax inversions by American companies.
The Treasury Department announced a new package of rules Monday aimed at making tax inversions, a manoeuvr in which U.S. companies reincorporate overseas to take advantage of lower tax rates, less financially appealing. The new regulations seek to limit internal corporate borrowing that shifts profits out of the United States.
Pfizer’s planned acquisition of Allergan is aimed at reducing Pfizer’s tax bill. The proposed transaction, announced last November, would move the official headquarters of Pfizer Inc. from New York to Ireland, where Allergan is based.
Pfizer and Allergan PLC say they are reviewing the new Treasury rules.
Investors scattered before the opening bell Tuesday.
Allergan’s stock is down $57.17 to $220.38 per share.