US attempts to stop tax inversion deals 'short-sighted,' says Allergan CEO

Now that US drugmakers Allergan (NYSE: AGN) and Pfizer (NYSE: PFE) have confirmed they are in acquisition talks (The Pharma Letter October 29), the focus turns to US politics and tax inversion-designed transactions, as analysts and investors express growing fears that the US government will try to block the deal.

In an interview with the Financial Times published this morning, Ireland-headquartered Allergan’s chief executive, Brent Saunders, warned against political interface designed to frustrate deals aimed at reducing corporation tax.

“It would be a short-sighted intervention by politicians if they were to intervene,” said Mr Saunders, adding: “What has to happen is the US has to create a competitive environment for companies that want to compete here on a global scale.”