World Economy

Merger Talks Raise Tax Hackles

Merger Talks Raise Tax HacklesMerger Talks Raise Tax Hackles

Pfizer Inc, the No. 1 US drugmaker, and Botox maker Allergan Plc said they were in friendly talks to create a pharmaceutical colossus but the prospect that the company would seek to avoid US taxes sounded political alarm bells, Reuters reported. Both New York-based Pfizer and Dublin-based Allergan said no agreement has been reached and declined to discuss any terms of the deal, which would potentially set up Pfizer to take advantage of Ireland’s lower tax rates. Allergan shares rose 6% to $304.38 in US trading, while Pfizer closed off 1.9% at $34.77.