Pharmaceutical giant Pfizer has merged with Botox maker Allergan for a deal of $160 billion, one of the biggest takeovers in health care industry and the biggest too in a tax-saving strategy.
However, after the announcement shares of both the companies were down in mid-day trading on November 20, indicating investors are not happy with the deal. Pfizer shares closed 2.64 percent lower at $31.33 and the Allergan shares closed down 3.44 percent at $301.72.
US President Barack Obama meanwhile has called inversions unpatriotic. Last week the Treasury Department and the Internal Revenue Service announced stricter rules to restrict such practice further in future. In recent years billions of dollars have been lost by the government in tax revenue from similar inversions.
The combined company would be named Pfizer and to have 15-member board of directors. It would be led by Pfizer and to be domiciled in Ireland with executive offices too in the country, but the global operating headquarters would be in New York.