Is it all falling apart ?
Bloomberg News reports that the deal could be in jeopardy after the U.S. took tougher steps this week to limit corporate inversions, where a company adopts a foreign address to cut its tax bill. Pfizer structured the deal to take advantage of Allergan’s Dublin headquarters where the corporate tax rate is more favorable.
At stake for advisers is an estimated $350m, according to previous estimates from consultants Freeman & Co. Pfizer was expected to pay $120m to $150m in fees while Allergan’s bankers would split $160m to $200m. Goldman Sachs, Centerview Partners, Guggenheim Partners and Moelis worked for Pfizer. Allergan was advised by JPMorgan and Morgan Stanley.
The loss of this deal could be particularly harmful for smaller investment banks, which had gained standing in M&A league tables after working on a mega-deal.
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