Courtesy of Benzinga.
Walgreen (NYSE: WAG) shares were tanking Tuesday after a report it will acquire the remaining 55 percent of Swiss-based Alliance Boots and then remain domiciled in the United States.
Investors had seen a so-called tax inversion in the acquisition, enabling Walgreen to shift its headquarters to Switzerland or Britain for corporate tax savings.
Walgreen has an option expiring in February to acquire the remaining stake in Boots. from U.S. private-equity giant KKR & Co. LP.
Boots operates more than 3,000 drug stores mainly in Europe and Britain.
Britain's Sky News, a unit of Twenty-First Century Fox (NYSE: FOXA) reported Tuesday that "intense U.S. political pressure" caused Walgreen to squelch the inversion plan.
Walgreen will pay $8.45 billion for the remaining Boots stake, Sky reported, citing unnamed sources.
Walgreen closed Tuesday at $69.12, down 4.15 percent.
