http://www.wsj.com/articles/pfizer-allergan-on-cusp-of-merger-deal-1448217
Partial:
The final terms of the deal include 11.3 Pfizer shares for every Allergan share, the people said. The deal also contains a small cash component, they said. The boards of each company are expected to approve the agreement Sunday and it could be announced Monday.
The takeover would be the largest so-called inversion ever. Such deals enable a U.S. company to move abroad and take advantage of a lower corporate tax rate elsewhere, and have remained popular in the face of U.S. efforts to curb them.
To help secure that lower tax rate, the deal will be technically structured as a reverse merger, with Dublin-based Allergan buying New York-based Pfizer, according to the people.
Pfizer Chief Executive Ian Read will lead the combined company with Allergan CEO Brent Saunders serving as his No. 2, the people said. Other Allergan executives are expected to join the firm too.
The companies expect it will take seven to nine months for the deal to close, sometime after Allergan finishes a $40.5 billion sale of its generics business to Teva Pharmaceutical Industries Ltd. early next year, the people said.
After the deal closes, the combined company is expected to evaluate splitting into two businesses, one focused on patent-protected products and the other on drugs that have lost their patent protection or are close to losing it.
Partial:
The final terms of the deal include 11.3 Pfizer shares for every Allergan share, the people said. The deal also contains a small cash component, they said. The boards of each company are expected to approve the agreement Sunday and it could be announced Monday.
The takeover would be the largest so-called inversion ever. Such deals enable a U.S. company to move abroad and take advantage of a lower corporate tax rate elsewhere, and have remained popular in the face of U.S. efforts to curb them.
To help secure that lower tax rate, the deal will be technically structured as a reverse merger, with Dublin-based Allergan buying New York-based Pfizer, according to the people.
Pfizer Chief Executive Ian Read will lead the combined company with Allergan CEO Brent Saunders serving as his No. 2, the people said. Other Allergan executives are expected to join the firm too.
The companies expect it will take seven to nine months for the deal to close, sometime after Allergan finishes a $40.5 billion sale of its generics business to Teva Pharmaceutical Industries Ltd. early next year, the people said.
After the deal closes, the combined company is expected to evaluate splitting into two businesses, one focused on patent-protected products and the other on drugs that have lost their patent protection or are close to losing it.