Pfizer, Allergan in merger talks

Allergan plc (NYSE:AGN) said Pfizer Inc. (NYSE:PFE) has approached it regarding a potential merger. Both companies said they are in "preliminary friendly discussions" for a deal. Neither company disclosed terms. Pfizer declined to comment on the discussions and Allergan did not respond to inquiries.

On Pfizer's earnings call on Tuesday, Chairman and CEO Ian Read was asked about the "political risk" of any potential deals that would result in a tax inversion for the pharma. Read responded that Pfizer required a "competitive tax rate" to ensure that its shareholders receive a maximum return on investment. Allergan is based in Dublin. ...