Pfizer's talks to acquire Allergan in a $150 billion deal that would see the U.S. drug giant redomicile in Ireland accelerated on Wednesday, as the U.S. Treasury prepared to clamp down further on such tax inversions.
Pfizer is negotiating a price of $370 to $380 for each Allergan share, a person familiar with the discussions said, asking not to be identified because the talks are confidential. Allergan shares ended trading on Wednesday at $310.8 per share.
While negotiations have made progress in recent days, an agreement is not imminent and its timing remains uncertain following the Treasury's disclosure that it would seek to tighten the rules on inversions, the source added.
Inversions typically involve a U.S. multinational buying a smaller foreign competitor and relocating to its home country, if only on paper, to escape U.S. taxation. Ireland is a common destination. Management usually stays in the United States.