Updated on 1 August 2015
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Singapore: This past May, Deutsche Bank analyst Mr Gregg Gilbert sent a note to the clients writing, ‘Introducing PfizerKline', catalyzing an unprecedented adrenalin rush among pharmaceutical industry giants and investors around the world.
"....As evidenced by Pfizer's interest in AstraZeneca last year, one important goal for Pfizer has been to seek a deal that would maximize access to its balance sheet and improve its tax structure," Mr Gilbert wrote.
He also pointed that this potential combination could be ‘materially accretive' to earnings per share and discounted cashflow. According to the calculations, the deal would be valued at an enormous $146 billion.
Appealing British cos
The deal would grant Pfizer major tax benefits, as the company would move its legal address to the UK instead of the US, lowering its corporate tax rate in the process.