A Salix Pharmaceuticals Ltd. shareholder has filed a Delaware Court of Chancery lawsuit seeking to enjoin the drug manufacturer’s $2.7 billion merger with an Irish affiliate of Cosmo Pharmaceuticals SpA. The plaintiff alleged the transaction creates a tax shelter for the corporation in Ireland, while sticking its shareholders with an increased tax bill for their stock gains.
Salix, a Delaware corporation and manufacturer of gastroenterology medicines, announced July 9 it expects to merge with an Ireland-based affiliate of Cosmo. Under the transaction, Salix would relocate its legal home to Ireland, a country with a smaller corporate tax rate than the United States.
