MERUS LABS INTERNATIONAL INC T.MSL

Russ Dratwa Newsletter

[retiredcf]

Extract from the weekend edition. Although the article is on CXR, it highlights the advantages of tax inversion. MSL would offer similar benefits to any company looking at taking them over. GLTA 

• THE TAX INVERSION TRANSACTION: THE MOST-EFFICIENT WAY TO HOOK-UP SINCE ARRANGED MARRIAGES? Concordia Healthcare (CXR : TSX : $32.96), which happens to be the best-performing stock on the TSX this year, may not be on the TSX much longer. Management at CXR stated that the company is a takeover target for companies seeking lower taxes and that it has already turned down one offer. In an interview with Bloomberg, CXR’s CEO, Mark L. Thompson, stated, “We are undoubtedly a target. Our structure, it’s as good as you’re going to get” for drug companies seeking a so-called tax inversion takeover. Thompson highlighted that CXR has two units based in Barbados and has a blended tax rate in the “single digits”. Bloomberg noted that, according to recent research the number of U.S. companies looking to takeover other firms for their addresses in lower-taxed jurisdictions has doubled in relation to all overseas deals. Further likelihood of a deal for CXR in the near-term, could come from the push in Washington to limit such deals or raise foreign ownership requirements for inversions as early as 2015.

 

[lscfa]

I believe the MSL has an even lower tax rate than CXR. Hodgins said it was 5% based out of the Netherlands.

[kingpost]

iscfa-- it is luxenburg i believe... not the netherlands....

[lscfa]

The 20f filing says MSL has a subsidiary in both Luxemburg and the Netherlands.

[kingpost]

both good picks and more respected governments there than Barbados where Concordia heralds... I think some companies use Ireland also which has a good governent...Luxemburg should be lower rate than the Netherlands though, but the blended rate would be attractive I am sure...