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Papers: Pfizer Inc-Allergan deal in doubt after tax changes

Last updated: 23:36 05 Apr 2016 AEST, First published: 18:36 05 Apr 2016 AEST

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It appears the colossal Pfizer Inc. (NYSE:PFE)-Allergan merger could be kyboshed, according to the Wall Street Journal, after the Treasury Department imposed tough new curbs on corporate inversions.

The move to make it harder for companies to move their tax addresses out of the U.S. and then shift profits to low-tax countries using a manoeuvre known as earnings stripping, shocked Wall Street.

It has thrown the US$150bn merger into doubt, after Pfizer made its intentions known to move to Ireland to avoid higher corporation tax. This process is known as an inversion.

The WSJ also reports the news that Walt Disney Co (NYSE:DIS) could be going back to the drawing board with its succession plan, after Tom Staggs, chief operating officer and widely expected next chief executive, announced he would step down.

According to the report, Staggs made the decision after discovering that current CEO and chairman Robert Iger and the rest of the board have decided to broaden the search for Iger’s successor to include more candidates.

Iger, who plans to retire in June, will have to find another successor before he rides off into the sunset.

Elsewhere, USA Today leads with the news that the Yahoo Inc. (NASDAQ:YHOO) proxy battle could take three months to be completed.

Files are expected to be submitted this month, with Yahoo fighting an attempt by activist hedge fund Starboard Value to overthrow its current board and oust chief executive Marissa Mayer.

Starboard Value and other activist investors have reportedly pressured Yahoo's board to attempt a sale of its core assets after it abandoned plans for a tax-free spinoff of its stake in Chinese e-commerce company Alibaba Group Holding Ltd (NYSE:BABA).

Over at the New York Times, the paper reports that the National Football League (NFL) has signed a deal with Twitter (NYSE:TWTR) to broadcast 10 Thursday night regular-season games free over the Internet.

The partnership will allow Twitter to push into the sports world to attract new users after new user figures slowed last year, a metric chief executive John Dorsey is said to pay close attention to.

Finally, electronic car giant Tesla Motors Inc (NASDAQ:TSLA) told customers it sometimes has trouble meeting expectations, after it delivered 14,820 luxury vehicles in the first quarter of 2016, falling short of the expected 16,000 deliveries, according to the LA Times.

Chief Executive Elon Musk tweeted Saturday that the company would need to build a plant in Europe to keep up with demand, but also cited the company’s “hubris” for the unexpected delivery shortage.

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