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Pfizer’s $119-billion (U.S.) takeover bid for U.K.’s AstraZeneca is the most prominent example yet of a U.S. company trying to reduce taxes by merging with a foreign rival.
Pfizer’s $119-billion (U.S.) takeover bid for U.K.’s AstraZeneca is the most prominent example yet of a U.S. company trying to reduce taxes by merging with a foreign rival.
(STEFAN WERMUTH/REUTERS)

U.S. cracking down on ‘inversions’ used to escape taxman

Some dull U.S. industrial conglomerates may take on a new shine if the industry jumps on the tax-arbitrage bandwagon. Juiced up on drug deals – like Pfizer’s bid for AstraZeneca – that promise big potential savings, investment bankers are pitching copycat transactions. Tyco International, Ingersoll-Rand and Pentair have already moved overseas to escape high U.S. corporate rates, and could tempt bigger peers who want to keep more of their profits from Uncle Sam.