Hedge funds want Walgreen to relocate


A number of hedge funds with a piece of Walgreen (WAG +2.5%) are pressing the firm to relocate to Europe for tax purposes.

The group thinks the company's ownership in Alliance Boots gives it the avenue to make the transition.

Walgreen isn't considering the option at the moment, according to reports.

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Comments (7)
  • keu4bike
    , contributor
    Comments (454) | Send Message
     
    Personally, I would rather see WAG focus on managing for the long term and growing the business. I'm not really interested in distractions for the purpose of shuffling taxes around. (long WAG)
    14 Apr 2014, 02:04 PM Reply Like
  • rambler1
    , contributor
    Comments (1020) | Send Message
     
    Time to start taxing companies that predominantly operate in this country to pay a tax regardless of domicile. Outside of ethics & setting it up you might as well open the spigot for everyone to leave, and still operate here.
    14 Apr 2014, 02:09 PM Reply Like
  • Captain Pike
    , contributor
    Comments (890) | Send Message
     
    hedge funds, a bunch of DB's for the most part. What a scummy idea. Maybe they should help elect a good leader instead.
    14 Apr 2014, 02:27 PM Reply Like
  • cannoncreek
    , contributor
    Comments (2) | Send Message
     
    I agree completely with Ron284. I have owned a 1000 shares of WAG for a long time and traded others. Every corporation that is predominately doing business here, should be based here and pay a full share of taxes here. What Apple does via Ireland and other bogus locations is criminal.
    14 Apr 2014, 08:38 PM Reply Like
  • keu4bike
    , contributor
    Comments (454) | Send Message
     
    Cannon,

     

    Agree and disagree.

     

    It's a global economy. Profits and expenses happen in a lot of places. Companies need to be able to move money around. It's a lot cheaper to move money to and from Ireland than to and from the U.S. To the extent Apple is storing money where it is least expensive to move/deploy that money for business purposes, I don't have a problem with what they're doing -- it's good business and maybe the solution is a better worldwide framework of tax treaties.

     

    To the extent they're playing games to avoid U.S. taxes, I'm with you.

     

    The issue is, how do you draw the line? I don't think it's black and white. I think it is a broad, murky, and gray line.
    16 Apr 2014, 08:59 AM Reply Like
  • phxcrane
    , contributor
    Comments (762) | Send Message
     
    I'm for Walgreen leaving IL. Its the threat of companies leaving that keep the politicians in line. I can't imagine how bad it would get if companies could not leave. I am also getting out of IL. I can still vote with my feet.
    14 Apr 2014, 05:08 PM Reply Like
  • keu4bike
    , contributor
    Comments (454) | Send Message
     
    phxcrane,

     

    While we probably agree on the quality of governance in IL, I'm not sure I want a company I own pulling up roots and moving. WAG has what, 2-3K headquarters folks in the Chicago area? Many of them are good people with years of experience who know their jobs -- collectively they're a lot more important to WAG's success than senior management.

     

    Some of those employees doubtless are in position to leave and share your views about voting with their feet. Most, however, have houses, families, spouses with jobs, kids in school, etc. They're not going to be willing and able to up and move with the company. If they do up and move, they're likely to be unhappy and/or disrupted employees for a while.

     

    WAG has been successful despite IL's messed up government for a long time. Don't mess with success.
    16 Apr 2014, 08:53 AM Reply Like
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