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Hello, Please help! The firm's US administrative headquarters is in Parsippany, NJ. Actavis historically has focused on generic drugs, but in recent years it has

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image text in transcribedimage text in transcribed The firm's US administrative headquarters is in Parsippany, NJ. Actavis historically has focused on generic drugs, but in recent years it has expanded through acquisition into branded drugs. branded drugs and for Forest Labs to penetrate foreign markets not currently survived. Forest Labs also has an impressive number of drugs in the pipeline. presence in specialty pharmaceuticals and moved its headquarters to Ireland to take advantage of the country's favorable corporate tax environment. which was acquired by Bristol-Myers Squibb for $5.1 billion. proxy fight in as many years, Forest added an Icahn representative to its board in 2013 increasing his influence on board decisions. deal. evasion is the avoidance of taxes through illegal means such as misrepresenting income on a tax return. savings are expected to amount to at least $100 million. This gave Actavis a huge advantage in bidding for Forest Labs over other potential suitors by enabling it to offer a larger premium. company's new foreign "home." Therefore, a re-incorporation rarely, if ever, leads to the loss of American jobs. However, it does lead to a loss of tax revenue. Discussion_Muestions. Mergers, Acquisitions, and Other Restructuring Activities lapter, speculate as to the reasons Actavis acquired Forest Labs. 2. What alternatives to acquisition could Actavis have pursued? Speculate as to why a takeover was the preferred option? 3. Speculate as to how Actavis's takeover of Forest Labs may have created shareholder value? 4. Do you believe firms should be allowed to engage in tax inversions? 5. Why is Actavis organized as a holding company in Ireland? 6. Speculate as to why investors for both firms responded so favorably when news of the deal was announced

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