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| Botox-maker Allergan confirms Pfizer takeover approach | Botox-maker Allergan confirms Pfizer takeover approach |
| (34 minutes later) | |
| Botox-maker Allergan has confirmed it has held preliminary talks about a takeover by drugs giant Pfizer. | Botox-maker Allergan has confirmed it has held preliminary talks about a takeover by drugs giant Pfizer. |
| Dublin-based Allergan said no agreement had been reached and there was "no certainty that these discussions will lead to a transaction". | Dublin-based Allergan said no agreement had been reached and there was "no certainty that these discussions will lead to a transaction". |
| Allergan shares were up more than 8% in early trading in New York. | |
| Analysts said Pfizer needed to boost profits and may be looking to escape relatively high US corporate tax rates by moving its headquarters to Dublin. | Analysts said Pfizer needed to boost profits and may be looking to escape relatively high US corporate tax rates by moving its headquarters to Dublin. |
| "Allergan today confirmed that it has been approached by Pfizer Inc. and is in preliminary friendly discussions regarding a potential business combination transaction," the company said in a statement. | "Allergan today confirmed that it has been approached by Pfizer Inc. and is in preliminary friendly discussions regarding a potential business combination transaction," the company said in a statement. |
| "The company will not comment on speculation regarding the terms of a potential transaction." | "The company will not comment on speculation regarding the terms of a potential transaction." |
| The talks were first reported in the media late on Wednesday. | The talks were first reported in the media late on Wednesday. |
| "Pfizer desperately needs a large acquisition and the resulting synergies to reinvigorate its tepid earnings growth rate," said Maxim Jacobs at Edison Investment Research. | "Pfizer desperately needs a large acquisition and the resulting synergies to reinvigorate its tepid earnings growth rate," said Maxim Jacobs at Edison Investment Research. |
| "Also, Allergan would help Pfizer escape the uncompetitive US corporate tax rate, which has led company after company to domicile away from its shores." | "Also, Allergan would help Pfizer escape the uncompetitive US corporate tax rate, which has led company after company to domicile away from its shores." |
| Last year, Pfizer made an offer to buy UK drugs group AstraZeneca, but Astra rejected the offer, arguing it undervalued the company. | |
| If that takeover had gone through, the plan was for the new company to have had its headquarters in New York, but to be based in the UK for tax purposes. |