Abbott CEO defends inversions amid corporate exodus furor
July 18, 2014 by Arezu Sarvestani
Abbott chairman & CEO Miles White took to the media today to speak out against a new measure that would prevent corporate inversions, like the one included in Abbott’s sales of its generics business to Mylan Inc. and in Medtronic’s acquisition of Covidien.
These acquisitions agreements, as well as a handful of other mega-deals underway, include shifting the companies’ headquarters outside the U.S. where they will benefit from a more favorable corporate tax rate, especially on cash earned overseas. Not exempt from U.S. taxes, White emphasizes, are revenues collected prior to the inversion. Read more
Medtronic fights tax dodging rhetoric in Covidien merger
July 17, 2014 by Arezu Sarvestani
With talks heating up on Capital Hill about tax-dodging companies, medical device giant Medtronic issued an update regarding its tax position before and after the pending $43 billion merger with Covidien.
In an interactive graphic also filed with the SEC, Medtronic said that moving its headquarters overseas will only ensure that it can continue to use Covidien’s cash for U.S. investments. Read more
Allergan cuts 1,500 jobs, faces SEC complaint
July 21, 2014 by Arezu Sarvestani
Medical device maker Allergan announced today that it plans to cut 13% of its global workforce and delete some vacancies as the battle heats between the company and its unwelcome suitors.
The embattled Allergan said that it would lay off around 1,500 employees and eliminate some 250 vacant positions in a larger restructuring effort that the company estimates could save around $475 million in the 2015 calendar year. Read more
A countdown to failure for Valeant's hostile $53B Allergan takeover
July 18, 2014 by Arezu Sarvestani
Activist investor Bill Ackman issued a new appeal to Allergan shareholders this week, warning that time may be running out to further negotiations in Valeant Pharmaceuticals’ unrequited attempt at a takeover.
Ackman has been trying for months to push Valeant’s $53 billion hostile takeover on the unwavering Allergan, which has maintained that the company is better off on its own. Read more
GE Healthcare idles for another quarter
July 18, 2014 by Arezu Sarvestani
GE Healthcare isn’t terribly optimistic about its prospects for the rest of this year as its 2nd-quarter earnings report again shows softness in the U.S. dragging down total healthcare activity.
Despite some boosts in Latin America and China, U.S. sales dropped 2% for the 3 months ended June 30, leaving the entire division flat for the quarter. Read more