Barr, Teva merger poised for tax-free status

The tax gods were with Barr Pharmaceuticals and Teva Pharmaceutical Industries: They recently cleared some IRS requirements to have their merger deal defined as a reorganization with tax-free status.

That's quite a boon for Teva and Barr, who started the merger process in July. Barr stock will be converted into 0.6272 shares of Teva stock plus $39.60 in cash. New Jersey-based Barr will become a domestic subsidiary of Jeruselum-based Teva and the deal is expected to close later this year.    

To gain tax-free status, the acquisition must meet criteria under Section 368(a)(1)(A) and Section 368(a)(2)(D) of the IRS tax code--in addition to "Helen of Troy" rules related to foreign transactions--but it seems likely it will pass these and other required tests.   

Meanwhile, the companies might just need the tax break, as Barr's first quarter results didn't quite hit the mark.

--read about it at Zacks
--see more at CFO.com

Suggested Articles

With a brand new approval for Adakveo under its belt, Novartis Sunday flaunted an analysis showing the drug could cut patient hospitalizations by 40%.

BeiGene only just won its first Brukinsa nod in MCL. But it’s already pushing to join the CLL field, and Sunday it rolled out more data.

How long can one infusion of CAR-T drug Yescarta continue helping patients with refractory large B-cell lymphoma? Pretty long, Gilead showed Saturday.