Pension Fund Sues AbbVie Inc (NYSE:ABBV) Over Shire Deal

Posted In Healthcare - By Sheryl Sternberg On Friday, September 19th, 2014 With 0 Comments

Dallas, Texas 09/19/2014 (ustradevoice) – According to reports, pension fund has decided to sue AbbVie Inc (NYSE:ABBV) over purchase deal of Shire. Recently a Louisiana pension fund said that ABBV’s decision to buy Shire for $54.5 billion in order to move its legal base to abroad could result in huge capital gains and tax benefits.

Pension fund’s statement over ABBV-Shire deal:

As per the reports, AbbVie Inc (NYSE:ABBV)’s recent transaction of acquiring Shire is the largest among all the tax-inversion buyouts. On this issue, a Plumbers & Steamfitters Local 60 Pension Fund decided to file a law-suit against the company in a Delaware Chancery court. In the suit, it stated that authorities should have barred AbbVie Inc (NYSE:ABBV) with immediate effect from holding a shareholder vote on the takeover till the time it addressed various problems of this deal. The pension fund had objected on the fact that it coercive $545 million termination fee in the acquisition deal.

A lot of U.S companies have tried to buy companies that have headquarters in any other country in order to save tax amount. It has been done by a lot of companies, because of which U.S had to suffer from a huge opportunity loss which could otherwise be assured tax income of the country. In this regard, an announcement was made in the previous month by the government, according to which all the companies were warned in case they executed any acquisition transaction with foreign companies in order to save tax. U.S President Barak Obama called such companies “unpatriotic” and demanded treasury department to have a close eye on such companies. If situation doesn’t improve, then treasury may look forward to cracking down such transactions in coming months.

According to the pension fund that sued AbbVie Inc (NYSE:ABBV), the transaction between these two companies is a taxable event. It means that ABBV investors may have to pay taxes to the government, which they never had to pay otherwise.

About the Author

- Sheryl Sternberg is very passionate about her work. She has earned a reputation in the Tampa Bay area for landing interviews with some of the area's biggest and most controversial newsvmakers. She has also received numerous awards from the Associated Press, Society of Professional Journalists, and other media organizations for many of her exclusive stories. In addition to her three Emmys, Sheryl Sternberg has been nominated for four additional awards.

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