U.S. retailer Walgreen Co has backed away from a plan to reincorporate abroad to cut its U.S. tax bill, while the Obama administration said it was considering steps to curb such corporate tax domicile-shifting deals.Walgreen, the operator of the largest U.S. pharmacy chain, will purchase the 55 percent it does not already own of European rival Alliance Boots, but the U.S. company will not use the deal to move its tax domicile overseas, said a person familiar with the matter.Walgreen issued a statement late on Tuesday saying it would announce "several updates" on Alliance Boots at 6 a.m. Eastern time (1000 GMT) on Wednesday, followed by a conference call with management at 8 a.m. ET. The company said the updates would cover "the transaction's timing and structure."Walgreen's retreat will be the third major possible "inversion" deal involving a major company to collapse in recent months amid controversy, underscoring the complexity and heightened political sensitivity in the United States of these transactions.
Walgreen Co. (Walgreens), together with its subsidiaries, operates as a retail drugstore chain in the United States. Shares of WAG fell by 4.15% or $-2.99/share to $69.12. In the past year, the shares have traded as low as $46.75 and as high as $76.39. On average, 5984720 shares of WAG exchange hands on a given day and today's volume is recorded at 31358220.
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