Swiss-listed Cosmo Pharmaceuticals said on Wednesday it would merge its Irish subsidiary with U.S. firm Salix Pharmaceuticals, the latest in a wave of overseas deal-making by U.S. companies looking to lower their tax bill.American lawmakers have expressed concern about U.S. corporations shifting tax domiciles abroad, particularly to Ireland, Switzerland and elsewhere in Europe, to avoid taxes. These deals, known as inversions, are still rare but rapidly becoming more commonplace.High-profile mergers such as Medtronic Inc and Irish-based Covidien Plc, Pfizer's failed $118 billion bid for British rival AstraZeneca last month and - most recently - AbbVie, which raised its offer for Shire overnight, are deals that are driven at least in part by tax considerations.Shareholders of Salix, which is based in Raleigh, North Carolina, are expected to own nearly 80 percent of a jointly-held Irish unit following a stock swap with the parent company. The deal will add "modestly" to earnings per share from 2016 and more sharply thereafter, the company said.
Covidien Public Limited Company is engaged in the development, manufacture and sale of healthcare products for use in clinical and home settings. Shares of COV traded higher by 0.06% or $0.05/share to $90.85. In the past year, the shares have traded as low as $57.54 and as high as $92.68. On average, 4393350 shares of COV exchange hands on a given day and today's volume is recorded at 4274675.
Medtronic, Inc. (Medtronic) is engaged in medical technology - alleviating pain, restoring health, and extending life for millions of people worldwide. Shares of MDT traded higher by 0.02% or $0.01/share to $63.62. In the past year, the shares have traded as low as $51.22 and as high as $65.50. On average, 7111970 shares of MDT exchange hands on a given day and today's volume is recorded at 7627777.
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