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Monday, August 25, 2014

TAKEOVERCHATTER-Amid tax inversion craze, some U.S. companies get cold feet, (NYSE: THI), (TSE: THI.TO)

The headline noise may suggest otherwise but U.S. companies' interest in tax-driven deal-making may be starting to cool down.Bankers and lawyers providing takeover advice said on Monday that Burger King Worldwide Inc's intention to move its tax domicile overseas through a so-called inversion deal - in this case the purchase of Canada's Tim Hortons - shouldn't be seen as a sign of a lot more deals to come.They say that U.S. companies looking to purchase overseas rivals primarily for tax benefits are increasingly dismayed by rising prices, administrative hassles and fears of a U.S. government crackdown.Inversion deals allow U.S. companies to move their domicile abroad to countries such as Ireland, Britain, the Netherlands, and in Burger King's case Canada, where corporate taxation laws are more favorable than at home. In particular, some multinational companies are reluctant to stay in the U.S. because profits earned overseas are taxed here. In some of the jurisdictions, companies pay no tax on these profits.

Tim Hortons Inc., is a quick service restaurant in North America. Shares of THI traded higher by 18.91% or $11.88/share to $74.72. In the past year, the shares have traded as low as $50.67 and as high as $63.01. On average, 174706 shares of THI exchange hands on a given day and today's volume is recorded at 12162953.

Tim Hortons Inc., is a quick service restaurant in North America. Shares of THI traded higher by 19.26% or $13.25/share to $82.03. In the past year, the shares have traded as low as $56.12 and as high as $68.95. On average, 412553 shares of THI.TO exchange hands on a given day and today's volume is recorded at 5977048.



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