Pfizer-Allergan Deal May Be Imperiled by U.S. Inversion Rules

  • Treasury also targets related-party debt in new proposals
  • Secretary Lew says regulators exploring further measures

Pfizer-Allergan and the New U.S. Tax Inversion Rule

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As the U.S. took tougher stepsBloomberg Terminal Monday to limit the tax-cutting power of corporate inversions, analysts said the new rules may put a planned $160 billion merger between Pfizer Inc. and Allergan Plc in jeopardy.

By Tuesday, Allergan shares were trading at $224.78 at 8:30 a.m. in New York, below their price of $271.57 on Oct. 26, before reports that the two drug-makers were in talks about a deal.