Biotech Values

[Biowatch]

Normally, stock-only deals aren’t taxed because they are considered reorganizations, rather than sales, under the U.S. Tax Code. But Alcon’s U.S. shareholders may be surprised to learn that their shares will be taxable, according Wall Street tax expert Robert Willens. “This merger will not constitute a reorganization,” Willens says. “It could damage the deal.”

"...18% of Alcon’s total shares are owned by U.S. residents."
http://blogs.wsj.com/deals/2010/01/14/that-novartis-alcon-deal-may-have-a-tax-problem/

My impression was that many Alcon employees in Switzerland are minority shareholders, so presumably this tax loophole wouldn't affect them.


Thanks, Google!