Friday, May 2, 2014
Pfizer's Bid For UK Drug Company Is Rejected
Pfizer's bid was rejected by AstraZenca's board. Pfizer may have to up its bid to acquire the firm and reincorporate in the UK. Pfizer's strategy to reincorporate in the UK is known as inversion. Many firms are reincorporating in order to take advantage of lower tax rates. The UK may become a favorite tax haven for US corporations. Unless nation states take actions to reverse this trend, the competition between nation states may be entering a new phase. There will be a race to the bottom as multinational corporations make it difficult for nation states to manage their own tax policies.