Markets See Risk Around Pfizer-Allergan Merger Deal

The video discusses the market's reaction to Pfizer's potential acquisition of Allergan, focusing on the Treasury's crackdown on serial inverters. It explores the implications of new Treasury rules, debates on corporate tax rates, and the business rationale behind the acquisition. The video also highlights the legal uncertainties and regulatory challenges companies face in such deals.

What is the primary focus of the Treasury's actions against serial inverters?

• To increase corporate tax rates

• To unwind past deals

• To prevent companies from leaving the U.S. tax system

• To encourage more foreign investments

What is the potential impact of the proposed regulations on the Pfizer-Allergan deal?

• It might result in Pfizer remaining a U.S. company

• It could lead to a merger with another company

• It might lower Pfizer's stock prices

• It could increase Allergan's market share

What is one of the methods used by companies to benefit from inversions?

• Income stripping

• Increasing employee salaries

• Reducing product prices

• Expanding domestic operations

What is a major obstacle to corporate tax reform in the U.S.?

• Insufficient data on corporate profits

• Lack of public interest

• High cost of implementation

• Disagreement between political parties

Beyond tax benefits, what is another reason Pfizer might be interested in acquiring Allergan?

• To diversify its product line

• To reduce its workforce

• To enter new geographic markets

• To increase its sales growth

What is a significant concern for companies like Pfizer regarding potential regulatory changes?

• Uncertainty and legal risks

• Increased competition

• Loss of brand reputation

• Higher production costs

How do companies typically respond to unclear regulatory rules?

• By waiting for clarity

• By lobbying for changes

• By seeking legal loopholes

• By ignoring them