RLM Finsbury is handling AstraZeneca's media regarding Pfizer’s takeover overtures, a move largely reported as a tax dodge by the New York-based pharmaceutical giant.
Pfizer, if successful in its bid, would reincorporate in the UK, which would cut its tax burden.
The New York Times reported the acquisition bid highlights Pfizer’s effort to “effectively renounce its US citizenship” after 165 years.
The Wall Street Journal ran an editorial today called “Pfizer’s Tax Takeover,” in which it noted Pfizer shareholders would “welcome relief from a U.S. corporate tax rate that is among the world's highest.”
The paper noted “instead of paying punitive rates to return its money to the U.S., Pfizer figures it can get a better return paying $100 billion or so to buy a foreign company.”
Pfizer first contacted AstraZeneca in November about a deal.
AstraZeneca’s board deemed the value of that transaction significantly undervalued the company.
It also raised concerns about the “execution risks associated with the proposed inversion structure, as Pfizer would redomicile to the UK for tax purposes.”