Walgreen Pressured To Move Headquarters To Europe For Tax Purposes......

[global1]

Walgreen Co. is under pressure from a group of shareholders to move its corporate headquarters to Europe to take advantage of tax benefits, the Financial Times reported.

Shareholders owning about 5 percent of the company’s shares lobbied Deerfield-based Walgreen’s management to use its 45 percent ownership stake in Swiss-based Alliance Boots GmbH to change its legal base to Europe, the financial daily said.

Such a move, known as tax inversion, could significantly reduce Walgreen's taxable income in the United States, which has one of the world's highest corporate tax rates.

Here's the link: http://www.chicagotribune.com/business/breaking/chi-walgreens-headquarters-to-europe-20140414,0,4477149.story

Here's a chance for the management of Walgreen's to do the right thing and thumb their nose up to these investors.

Walgreen's got it's start in the U.S. and has been a U.S. based company all its existence. Management should tell these investors that they are dedicated to the U.S. and will remain a U.S. based company and that they are privileged to pay U.S. taxes.

But will they do that? That is the question.

I for one will never step into another Walgreen's in my life if the management succumbs to this investor group and moves its base of operations to Europe. However, if they do the right thing and stay here - I'll have a new respect for them.

Okay Walgreen's Management - It's your move. What are you going to do?

[Gravitycollapse]

1. The odds of this happening are so close to zero that they are of no substantive difference.

It's not going to happen.

[tazkcmo]

3. Not arguing with you

But I would like to know why you say it won't happen? I want to emphasize that I am not being argumentative or passive aggressive, just honestly curious because given corporate greed I can't think of any reason besides pure loyalty/patriotism. Oh, I really hope you are proven correct. Thank you in advance.

[Gravitycollapse]

4. I have an inside understanding of the company for multiple reasons.

Walgreens brands itself as THE American drug store. It has been around for more than 100 years and for those 100+ years it has been headquartered in and around Chicago.

Shifting its assets to Europe would be PR suicide. No hyperbole. It would ruin the company. That in the face of direct competition from an ever expanding CVS Caremark. No executive in their right mind would make Walgreens a European company. At least not any time in the near future. There would have to be a complete shift in the image of Walgreens and its brand before such a move could occur without devastating consequences.

[tazkcmo]

5. Thank you for your reply

Again, I hope you're right.

[okaawhatever]

2. The whole "United States, which has one of the world's highest corporate tax rates" isn't really

truthful. The tax rate is higher but after deductions corporations pay a very low average tax rate of 9.8%. If they move to Europe I say it will be that much easier for us to fight against our draconian pharmacy laws in this country, Let's get some real competition in the pharmacy industry and stop allowing patent protection no other country guarantees.

Why isn't one's co-pay cheaper if they go to Costco and save the insurance company half of the cost of the medication over..say, Walgreen's? Either way the individual pays their same co-pay. $10-50 bucks. There is no incentive to save the insurance company (really yourself) money.

But if they decide to move here is what I say:

I say, Good! Now we can start importing drugs from other countries and saving more than we'll lose by having these Richardheads move to Europe. What's good for the goose is good for the gander.

[awarecitizen]

6. Edited for Edification There is a stupid box

Last edited Sun Jul 13, 2014, 11:12 PM - Edit history (1)

I’m really puzzled. I’m really astounded, as to what other portions of the human anatomy are often -seemingly magically- “levitated” to “brain level”, often by otherwise intelligent entities. Well, Walgreens upper management has just done another “Romney” -are you telling me that there are some people that do not respect what we are doing to benefit us?-. They should have just kept this guy behind the pharmacy counter. He’s a public relations disaster. Walgreens was always known as a smart, sometimes hard nosed, sometimes even mean. But a truly intelligent corporation -in general- that always evidenced care. Well folks, just observe the boycott -it’s already started-. and watch the fun. You said you were accommodating New York investors. What part of your anatomy, do you suppose, came into “play” here? What do you think will happen to Walgreens business and market value when a large segment of the American Public starts boycotting your stores? Those “Rand Cannibals” will do what they always do -dump the stock-, while probably shorting it, to make even more money. Who’s going to take it in the “neck”? Walgreen’s loyal employees, Walgreen retirees/stockholders, possible bondholders, but not those self serving greedy “vulture” instigators. They will be long gone.
Of course, there is always the possibility that this is all part of an Insider Rand Cannibal Grand Scheme, -beyond my grade- because the end effects of the action appear to be only the result of blatant/visible stupidity, on the surface.