Perrigo Establishes Tax Base in $8.6B Elan Deal

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July 29 (Bloomberg) -- Bloomberg News' Matthew Campbell reports that Perrigo Co. has come to an agreement to buy Irish drug company Elan Corp. for $8.6 billion, establishing a low-tax base for international expansion. He speaks on Bloomberg Television's "The Pulse."

They were looking to acquire elan's products going forward.

Now we have this company, perrigo.

It is possible everyone can be satisfied.

Royalty pharma bought the -- wanted to buy elan.

They said they would have an auction and see who came along.

Perrigo came along with the pudgy offer.

What they want is -- they want the domicile in ireland.

They have a 12.5% corporate tax rate.

That is lower than the united states.

It is possible that royalty could come along and say, you want the tax domicile and we want the royalty.

Let's make a deal.

A three-way deal would be the best deal for everyone.

Certainly, for in-line shareholders -- elan shareholders.

For perrigo, they have a platform for international expansion by moving itself into the corporate shell of elan.

Does this give us clues as to how quickly this is put together?

The outcome that you were talking about being possible.

The financial structure may make it more desirable.

They will need cash to pay down this facility, as you mentioned.


This was put the other quickly.

-- this was put together quickly.

This is a rapid process.

Deals have been accelerating.

Telecoms and advertising and pharmaceuticals.

Anything else we should watch?

One of the things people are watching is what the smaller pharmaceutical companies will do in biotech and software.

Obviously the roche and beyers of the world are stable.

There are a lot of companies that are small in pharmaceutical terms.

A mere 20 or $30 billion.

Let's move on to corporate news.

Changes at the top of siemens.

The biggest energy and engineering company is ousting its ceo.

Here is the likely candidates to take the top spot.

Good to see you both.

Changes at the top.

This comes off the back of thursday's news.

Sales would not be met.

We are now at six years of chief for peter.

They are the least profitable.

That is the big point.

He put revenue before profit.

This text has been automatically generated. It may not be 100% accurate.


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