Pfizer Acquiring Allergan
HandelontheLaw.com Staff Writer
You are cordially invited to celebrate the wedding of Viagra and Botox in the second half of 2016. Pfizer, Inc. announced a deal to buy Allergan Plc for approximately $160 billion. The combined company will be renamed Pfizer Plc.
Wall Street was abuzz with the merger talks in late October 2015: https://www.youtube.com/watch?v=eSN38Hc3JoQ
The Pfriendly Pfolks at Pfizer Pfamously brought us Viagra and Lipitor while Allergan Plc is best known for Botox, Restasis and the Alzheimer’s drug called Namenda.
This largest-to-date merger in the healthcare industry will allow Pfizer to shift its headquarters from the United States to Ireland in a tax inversion maneuver that will lower its corporate tax rate from the 35% to 12 ½%.
Valuing Allergan shares at $363.63 each, the deal will allow:
- Allergan shareholders 11.3 shares in the combined company for each Allegan share currently held; and
- Pfizer stockholders the option of:
- one share of the combined company for each Pfizer share; or
- cash, provided the aggregate amount to be paid is neither less than $6 billion nor more than $12 billion (which eliminates me).
At least some aspects of corporate governance are set: Pfizer’s current Chief Executive will be CEO of Pfizer Plc; and Allergan’s current CEO will be COO of the combined company.
By Kathy Catanzarite
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