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WCCO DEBATE: McFadden’s business made millions on merger that moved U.S. company offshore

Investment banker Mike McFadden’s business made millions on a merger that moved a U.S. company overseas. McFadden tries to deflect criticism for this deal by saying his business didn’t represent the American company, they represented the Irish company. But the facts speak for themselves: McFadden’s firm DID manage the deal that resulted in Jazz Pharmaceuticals moving to Ireland to avoid paying U.S. taxes and it DID make more than $11 million.

FACT: McFadden’s Firm DID Manage The Deal That Resulted In Jazz Moving To Ireland To Avoid Taxes, And It DID Make More Than $11 Million

August 2014: “Minnesota Senate Hopeful Defends Firm’s Role In Merger That Led US Company To Ireland.” According to the AP, “Years before Burger King sized up a Canadian headquarters in a hunt for lower taxes, Republican U.S. Senate candidate Mike McFadden’s investment firm was involved in a merger that moved an American pharmaceutical company to Ireland and significantly dropped its tax rate. McFadden’s Minnesota-based firm made more than $11 million, according to public filings. The 2012 deal came at the foot of a recent wave of so-called tax inversions in which U.S. companies merge with a foreign partner and reincorporate abroad to generate tax savings.” [AP, via Star Tribune, 8/30/14]

HEADLINE: “Mike McFadden Defends Role In Irish Firm’s ‘Inversion’ Merger”[AP, via Pioneer Press, 8/29/14]

Lazard-Brokered Deal Helped Jazz Pharmaceuticals “[Relocate] Its Corporate Headquarters To Ireland And [Escape] The U.S. Tax Regime.” According to the New York Times, “In 2011, Jazz Pharmaceuticals, a California-based drug maker, acquired Azur Pharma, a small rival based in Ireland. Because the stock deal transferred more than 20 percent ownership of the combined company to foreign holders, Jazz was able to enact an ‘inversion’ — relocating its corporate headquarters to Ireland and escaping the U.S. tax regime. Jazz’s deal for Azur was part of a new wave of inversions that is occurring as U.S. companies look for tax relief wherever they can find it. And Ireland has proven a popular destination for inverted companies, thanks to its relatively low tax rate.” [New York Times,12/20/13]

Bottom line: Investment banker Mike McFadden’s business made millions on a merger that moved a U.S. company overseas to avoid paying U.S. taxes.