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I disagree they will have no problem with it. Maybe NSA but not Senators. This deal is basically a form of tax inversion. Or is Avago paying all US tax because
by dba7dba 11y ago
I disagree they will have no problem with it. Maybe NSA but not Senators.
This deal is basically a form of tax inversion. Or is Avago paying all US tax because of the joint HQ in San Jose?
- adventured 11y agoI agree that some Congress members might want to be annoyed by this, but nothing will come of it. It's not a tax inversion in legal terms at all, it's a straight acquisition (there are important distinctions there). Avago was smart to pay a lot of cash as well, to push Broadcom shareholder's ownership position down to about 1/3 (keeping it far away from the tax inversion lines). Here's why: "Thursday’s deal isn’t impacted by the Treasury [inversion] guidelines, says Willens, because Broadcom shareholders will own less than 60% of the stock of the acquiring corporation. It’s also not by definition an inversion since Avago is the acquirer, but the result the same. “Here all of the “normal” benefits of an inversion should be freely available,” Willens concludes." http://www.forbes.com/sites/antoinegara/2015/05/28/could-avago-become-the-valeant-pharmaceuticals-of-the-semiconductor-sector/ http://www.forbes.com/sites/antoinegara/2015/05/28/could-ava...