September 24, 2014 by Brad Perriello
Their stock prices may have taken a hit this week, but Medtronic and COV will likely be able to proceed with their $43 billion union under new U.S. Treasury rules announced this week governing inversion deals.
The U.S. Treasury Dept. moved Sept. 22 to stop inversion deals, looking to eliminate “certain techniques inverted companies currently use to gain tax-free access to the deferred earnings of a foreign subsidiary, significantly diminishing the ability of inverted companies to escape U.S. taxation.” Read more
September 29, 2014 by MassDevice
U.S. medical device maker Medtronic Inc is likely to try to renegotiate the structure and terms of its $42.9 billion deal to buy Ireland’s Covidien in response to new U.S. tax rules, according to people familiar with the situation.
The U.S. Treasury this week reduced the ease and benefits of U.S. companies buying foreign rivals so they can move their tax domicile abroad, a practice known as inversion. Concerns that U.S. companies were using the strategy to avoid paying taxes spurred the action. Read more
September 24, 2014 by MassDevice
Billionaire William Ackman’s Pershing Square Capital Management said on Tuesday that it would sue botox-maker Allergan Inc if the company went ahead with a deal to buy drugmaker Salix Pharmaceuticals Ltd.
Allergan is trying to seal a deal with Salix in order to stay independent and fend off a $53 billion hostile offer from Valeant Pharmaceuticals Inc . Valeant’s offer is backed by Pershing Square – Allergan’s largest shareholder with a 9.72 percent stake. Read more
September 29, 2014 by Alexander Soule
Tengion said it’s hired Jefferies to assess "all strategic alternatives," corporate shorthand for putting the Winston-Salem, N.C.-based company and its organ regeneration technology on the auction block.
Tengion’s technology is designed to regenerate a range of native-like organs and tissues to delay or eliminate the need for chronic disease therapies and organ transplantation. Its Neo-Kidney Augment is in Phase 1 clinical trials in Sweden and the U.S., according to a press release. Read more