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‘Inversion’ deals, foreign takeovers continue apace
By Liz Hoffman and John D. McKinnon, The Wall Street Journal, Sept. 21, 2015 8:32 p.m.
When Salix Pharmaceuticals Ltd. last October abandoned plans to buy an Irish drug company and move its headquarters overseas, it was chalked up as a win for Washington over “inversion” deals that were structured to avoid U.S. taxes. The victory was short-lived. In the year since the Treasury Department tightened its rules to reduce the tax benefits of such deals, six U.S. companies have struck inversions, compared with the nine that did so the year before.
Meanwhile, foreign takeovers of U.S. companies have soared, with similarly draining effects on U.S. coffers....
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