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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsCompany that Fled U.S. Over Taxes Now Wants Feds’ Help
A biotech firm that made headlines by abandoning its status as a U.S. corporation in order to gain tax advantages is now demanding that the Federal Trade Commission help protect it from a hostile takeover bid by an Israeli company. The irony was not lost among politicians in Washington who have criticized so-called corporate inversions.
Mylan, a generic drug maker based outside Pittsburgh, came under intense criticism earlier this year when it followed through on a plan to acquire a smaller firm in the Netherlands, and then transfer its corporate citizenship there. The move was undertaken to reduce the amount of taxes the company pays on drugs it sells overseas, while maintaining most of its operations in Pennsylvania.
The company came under fire from members of Congress and from the Obama administration as a symbol of corporate greed being placed above commitment to the country where the company grew and flourished.
Now, though, Mylan finds itself in a bind. It is the subject of a potential hostile takeover by an Israeli generic drug giant Teva Pharmaceuticals. In an effort to further its bid to buy Mylan, Teva has purchased nearly 5 percent of Mylans outstanding stock. Mylan is now asking the FTC to examine the stock purchase for possible violation of the requirement that large purchases of stock of U.S. firms must be reviewed by antitrust authorities.
In legal terms, Mylan probably has at least a defensible case. The company claims that its principal office remains in Pennsylvania, which makes it a U.S. issuer of stock for federal anti-trust purposes.
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Erich Bloodaxe BSN
(14,733 posts)TDale313
(7,820 posts)antigop
(12,778 posts)Wellstone ruled
(34,661 posts)Wonderful Karma on this one. Eat it!!!
hifiguy
(33,688 posts)The US wasn't good enough for them, so screw them.
How fucking dare they come crawling back now?
Snotcicles
(9,089 posts)Saviolo
(3,283 posts)Or a lawyer of any kind...
but all I can think is that this company still has major operations in the US, and if they're taken over by Teva, does that not put those jobs in the US at risk?
Can the FTC attach conditions to its help? Can they say they'll protect Mylan from an anti-trust hostile takeover (if indeed it is illegal) only on the condition that they transfer their corporate citizenship back to the USA where they will have to go back to paying the taxes again? I don't see the sense in throwing this company to the dogs at the expense of US jobs in an already depressed jobs market.
If they can attach conditions, make'em come back to the US, and if not, then at that point, it might be appropriate to say, "Hey, you got yourselves into this, you get yourselves out."
eppur_se_muova
(36,302 posts)dixiegrrrrl
(60,010 posts)Teva and Mylan.
The merger is not a good idea...we already have most of our drugs made outside the US.