Seeking Alpha

Next inversion? Hospira reportedly bidding for Danone unit

Hospira (NYSE:HSP) has emerged as a bidder for Danone's (OTCQX:DANOY) medical-nutrition unit in what could be about a $5B deal, reports the FT. A purchase could allow the Illinois-based Hospira to move its domicile abroad for tax purposes.

Hospira's 25% rally YTD is a boon since to qualify for an inversion owners of the acquired company must receive at least 20% of the merged company's stock, meaning Hospira - currently valued at $8.6B - would have to fund a sizable portion of the deal with its shares.

Previously, European consumer outfits like Nestle and Fresenius had been reported as prospective bidders for the Danone business, but it's unclear if either continues to have interest.

Previously: Report: Danone looking to sell medical nutrition business to Nestle

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Comments (3)
  • tomlos
    , contributor
    Comments (1252) | Send Message
    Another IL company shows us the door... Good for them.
    27 Jul 2014, 09:41 PM Reply Like
  • Exquisite Decay
    , contributor
    Comments (265) | Send Message
    Another spin-off from Abbott Labs. Maybe Abbot will spin off more and more of its company until nothing is left and these spin-offs will all invert overseas.
    27 Jul 2014, 11:10 PM Reply Like
  • chopchop0
    , contributor
    Comments (4457) | Send Message
    Great. I hope one of these inversions lights a fire under congress's butt and gets some reform going on corporate tax reform.
    27 Jul 2014, 10:03 PM Reply Like
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