While Pfizer Inc.'s CEO acknowledged Tuesday that the U.S. Treasury Department's recent crackdown on inversions has diminished the deal's appeal, the drug maker has yet to rule out an acquisition that would lower its tax bill.
While the federal government may be trying to prevent U.S. corporations from relocating overseas for tax purposes, it has failed to stop companies that have already completed such deals from doing their own follow-on acquisitions of U.S. companies.
Silicon Valley employees at technology companies like Google Inc., Facebook Inc. and Twitter Inc. have enjoyed free cafeterias as well as pizza joints and kitchens stocked with organic produce, on behalf of their employers. The benefit has become ingrained into much of the valley's culture and is believed to encourage collaboration and longer work hours.
Two new developments in negotiations over taxes could mean lawmakers are one step closer to restricting inversion deals.