According to a Reuters report Pfizer and Allergan are in friendly but early talks to become the world's largest drugmaker. Allergan shares jumped 6.4 percent to $305.46 in U.S. trading, while Pfizer was off 2.7 percent at $34.51.
Deals like these face public backlash due to tax inversion techniques that will have American media and policy makers up in arms over this proposed deal. "It will make for good theater about evil corporate America, but Pfizer is looking out for the interest of shareholders," said Mike Krensavage, principal at Krensavage Asset Management.
Chuck Shcumer, who along with Carl Icahn has challenged these tax inversion techniques in past stated "the continued pursuit of inversions, mergers and foreign acquisitions of major U.S. companies for purely tax purposes shows there is a lot more work to be done to stop them. It will take legislation to effectively combat this disturbing trend."
Reuters reports that a Pfizer purchase of Allergan, with a market value of more than $113 billion, would be the biggest in Pfizer's long history of huge deals, eclipsing its $90 billion Warner-Lambert acquisition in 2000 to gain control of Lipitor, once the world's top-selling medicine.
Check back for more details on this potential mega-merger as the deal progresses.
To read more from our staff click here
To read more from Reuters click here