WASHINGTON (AP) -- Shares of Walgreen Co. have tumbled on media reports that the drugstore chain will not reincorporate itself overseas -- a politically touchy move that could significantly lower its tax bill.
Walgreen owns a 45 percent stake in Alliance Boots, the largest drugstore chain in the United Kingdom. The company has said it will soon announce whether it will acquire the remaining stake of the company and use an organization technique called an inversion to take advantage of the U.K's lower corporate tax rate.
U.K. media reported Tuesday that the Deerfield, Illinois-based company will indeed acquire the British chain, but without moving its tax base overseas.
A Walgreen spokeswoman said Tuesday she could not immediately comment on the report.
Dozens of U.S. companies have completed inversions in recent years.
CHICAGO (AP) -- U.S. Sen. Dick Durbin says he is pleased by Walgreen Co.'s apparent decision to keep its headquarters in Illinois. But the Democrat said Tuesday pressure should be put on other businesses considering a move overseas to lower their tax burdens.
Media reports have the nation's largest drugstore chain deciding against reincorporating in the United Kingdom.
Walgreen owns a 45 percent stake in Alliance Boots, the U.K's largest drugstore chain. Walgreen has said it will soon announce whether it will acquire the company's remaining outstanding shares.
Walgreen executives have considered using an organizational technique called an inversion to take advantage of the U.K's lower corporate tax rate.
Durbin calls it wrong for U.S. companies to reap the benefits of being created in the U.S. and then move their corporate offices overseas.