This is only a Preview!

You must Publish this diary to make this visible to the public,
or click 'Edit Diary' to make further changes first.

Posting a Diary Entry

Daily Kos welcomes blog articles from readers, known as diaries. The Intro section to a diary should be about three paragraphs long, and is required. The body section is optional, as is the poll, which can have 1 to 15 choices. Descriptive tags are also required to help others find your diary by subject; please don't use "cute" tags.

When you're ready, scroll down below the tags and click Save & Preview. You can edit your diary after it's published by clicking Edit Diary. Polls cannot be edited once they are published.

If this is your first time creating a Diary since the Ajax upgrade, before you enter any text below, please press Ctrl-F5 and then hold down the Shift Key and press your browser's Reload button to refresh its cache with the new script files.


  1. One diary daily maximum.
  2. Substantive diaries only. If you don't have at least three solid, original paragraphs, you should probably post a comment in an Open Thread.
  3. No repetitive diaries. Take a moment to ensure your topic hasn't been blogged (you can search for Stories and Diaries that already cover this topic), though fresh original analysis is always welcome.
  4. Use the "Body" textbox if your diary entry is longer than three paragraphs.
  5. Any images in your posts must be hosted by an approved image hosting service (one of: imageshack.us, photobucket.com, flickr.com, smugmug.com, allyoucanupload.com, picturetrail.com, mac.com, webshots.com, editgrid.com).
  6. Copying and pasting entire copyrighted works is prohibited. If you do quote something, keep it brief, always provide a link to the original source, and use the <blockquote> tags to clearly identify the quoted material. Violating this rule is grounds for immediate banning.
  7. Be civil. Do not "call out" other users by name in diary titles. Do not use profanity in diary titles. Don't write diaries whose main purpose is to deliberately inflame.
For the complete list of DailyKos diary guidelines, please click here.

Please begin with an informative title:

Company Bows to Shareholder Concern on Inversion Plan

The New York Times is reporting that Walgreens will buy Alliance Boots but will not be "inverting" to avoid paying US taxes.

Walgreen is near a deal to fully take over the British pharmacy retailer Alliance Boots — but will do so without moving its corporate headquarters abroad.

The American retailer is closing in on a deal to buy the 55 percent of Alliance Boots that it does not already own, a person briefed on the matter said on Tuesday. But the transaction, which could be announced as soon as Wednesday, will not include a move to relocate Walgreen‘s corporate citizenship to a lower-tax country.

Such a move, known as an inversion, would have required renegotiating the existing agreement with Alliance Boots, something the British retailer was unwilling to accommodate, this person said.

Following objections raised by shareholders, including a shareholder proposal by a LIUNA-affiliated pension fund calling for a policy that bars inversions, Walgreen Co. has decided to not to proceed with a plan to legally restructure as a Swiss company.

Companies which “invert” maintain the benefits of being based in the U.S., while slashing the amount of corporate taxes they pay. The scheme is estimated to cost the U.S. economy $20 billion in the next 10 years, according the White House.

“Walgreen Company’s decision to avoid a risky inversion plan is a victory for long-term investors,” said LIUNA General President Terry O’Sullivan. “The company’s inversion plan would have been bad for shareholders and bad for America; allowing them to avoid paying their fair share of taxes that support U.S. infrastructure, education, national defense and other crucial programs. As long-term investors, we were concerned about the impact on the reputation and value of the company.”

Incorporation outside the U.S. could make it more difficult for shareholders to hold a company, its officers and directors legally accountable in the event of wrongdoing. Many jurisdictions outside of the United States have much weaker shareholder rights.  In fact, in some countries shareholders have extremely limited ability to sue officers and directors derivatively, on behalf of the corporation.

In addition, reincorporation outside the U.S. carries the risk of removal from the S&P 500 and other stock indices which can affect a company’s stock price.

LIUNA-affiliated funds have been active since 2005 in overseas incorporation issues involving U.S. companies and are concerned about the long-term value of investments.


You must enter an Intro for your Diary Entry between 300 and 1150 characters long (that's approximately 50-175 words without any html or formatting markup).

Extended (Optional)

Originally posted to The New Hampshire Labor News on Tue Aug 05, 2014 at 02:03 PM PDT.

Also republished by Chicago Kossacks.

Your Email has been sent.