I timed my post of two days ago perfectly: no sooner than I had finished trumpeting the sagacity and confidence shown by the AstraZeneca directors in buying shares in their charge, than it promptly deflated by 5%
The reason given was that stricter rules on tax inversion in the US may scupper future deals. And the proposed AstraZeneca takeover, for all the protestations of Pfizer, did seem to have a large element of tax inversion lurking near its core. A US Treasury spokeswoman said that the department is “reviewing a broad range of authorities for possible administrative action that could limit the ability of companies to engage in inversions, as well as approaches that could meaningfully reduce the tax benefits after inversions take place.” And with that, AZN returned to ground.
Now we will see whether its pipeline can fulfil that potential…
Disclosure: I hold a position in AZN.
Disclaimer: This post is not a recommendation to either buy or sell. Please consult your investment advisor.