Pfizer Evinces Interest In Actavis

(RTTNews) - Pfizer Inc (PFE) has evinced interest in buying Actavis Plc (ACT), although no formal talks or offer have taken place, Bloomberg reported Tuesday, citing people familiar with the matter.

Pfizer's interest in buying Actavis probably stems from its desire to shift its tax domicile overseas in order to benefit from lower tax rates, or tax inversion.

Such incidences have been on the rise as companies clinch acquisition deals with firms located abroad and benefit from tax inversion.

Actavis, based in Parsippany, New Jersey, obtained an Irish tax domicile by last year's purchase of Warner Chilcott Plc.

In May, Pfizer failed in its attempt to buy UK-based AstraZeneca Plc for $116.6 billion.

Actavis, meanwhile, was reported to have made an offer to acquire Allergan, the terms of which were not known. Allergan is said to have rejected the offer as it was focused on finalizing its purchase of Salix Pharmaceuticals Ltd (SLXP).

Pfizer stock closed Tuesday at $30.05, down $0.13 or 0.43%, on a volume of 29 million shares on the NYSE. In after hours, the stock dropped $0.01 or 0.03%.