We will be sent a gigantic tax bill and stockholders will be forced to sell shares to pay capital gains taxes. This deal benefits management and AZN holders only. We will get screwed.
I went to Pfizer's investor's relations website page and sent them a message explaining my objections to the AZN acquisition. Essentially it's two-fold. First, most current Pfizer shareholders will be forced to pay capital gains. For some the amount will be quite large. For many of those people, ones that do not plan to sell, this is an expense that they never should have had to pay. The second objection is that the benefits of this acquisition depend upon the continuation of current tax law. If the UK increases corporate taxes, or the U.S. decreases corporate taxes, or the U.S. passes a law that prohibits tax inversions then a major reason for proceeding with this acquisition is no longer present. How is Pfizer management able to predict how the laws will or will not change? I have received no response to my email.
Unless I'm missing something big I don't see how this acquisition can be justified? To my knowledge Pfizer management has not publically addressed these concerns? They are suppose to be acting in the best interests of the shareholders. I'm a shareholder and I feel quite strongly that they are not acting in my best interest. It may be time to seek a new CEO and board?
Those that don't know the risks of investing, need not invest. Sorry you all weren't aware that this is a possibility with ANY company you invest in. Yes, you will get hit with a tax on capital gains. Go cry elsewhere if you have a problem with it.
Sentiment: Strong Buy
I'm skeptical about current shareholders having to pay a capital gains tax. They will receive new stock in the newly formed company depending on current ownership. Another poster wrote they read it in the WSJ. Was that in an editorial or actual news story?
No, makes no sense to US stockholders. You are either part of Pfizer management team or an AZN stockholder. US shareholders in taxable accounts holding Pfizer shares are going to receive a gigantic tax bill if this deal is approved.
Because US stockholders will be forced to exchange their shares in a new company in a taxable merger. US holders will pay capital gains taxes on their stock and own less of the newly merged company.
US tax law says that when a company does a tax inversion it is treated as if the company was sold. You must pay capital gains tax on any appreciation you have had in the value of your stock. So, if you purchased Pfizer at an average price of $15/shr, and its value is $30/shr when the inversion occurs, you will have a capital gain of $15/shr and be liable for the taxes on these gains!
This is unfavorable to anyone that does not want to sell their Pfizer stock at the time of the inversion. It is especially unfavorable to people, such as myself, that have purchased Pfizer shares as a source of income for retirement and not capital gains. I can hardly believe that Pfizer management is doing this to its shareholders!?
you got that right. It's the worst rip off I have seen in 20+ years of investing.
Shareholders will have to sell stock to pay taxes which means they will be selling into a declining trend as others are also forced to sell. Plus the company is going to overpay for AZ, if they get it at all. WORST OF ALL WORLDS.