Walgreen Co., the largest U.S. drugstore retailer, withdrew its financial goals for fiscal year 2016 as it considers buying the remainder of Alliance Boots GmbH and possibly moving overseas to lower its tax bill.
Anti-poverty advocates asked the U.K. government to investigate the offshore tax arrangements of Alliance Boots GmbH, alleging that the drugstore operator has underpaid by as much as 1.3 billion pounds ($2.2 billion).
Alliance Boots GmbH, the pharmacy company that loaded up on debt in a 11.1 billion pound ($17.4 billion) leveraged buyout before the credit crisis, is now seeking success by cutting borrowing as it expands globally.
Barry Rosenstein, founder of Jana Partners LLC, said his hedge-fund firm is working behind the scenes with Walgreeen Co. after the drugstore chain’s purchase of a controlling stake in U.K. retailer Alliance Boots Gmbh.
Farmacias Ahumada SA, Chile’s second- biggest pharmacy chain, surged the most in 16 years after Alliance Boots Holdings Ltd. agreed to buy its outstanding shares as part of a takeover of Latin American drugstores.