life was so bad for mylan in the u.s. that it decided to go from pennsylvania dutch to just plain dutch. [laughter] well, here are some of the terrible conditions that mylan faced in their home country. millions of dollars in oppressive tax credits for things like economic opportunity, for things like industrial expansion, for things like manufacturing investment, for research and development, for something called "strategic research and development." which is apparently a whole bleep different thing than regular research and development. we're running out of room. super credits against business franchise tax, super credits against corporate net taxes, even a tax credit for rehabilitating an historic building. yes, taxpayers gave a multibillion dollar generic boner pill company money to artificially prop up an aging structure long past the point that nature meant for it to collapse to rubble. [cheering and applause] by the way, if that building stands for more than four hours, you may want to call your architect. [laughte

there you can see mylan up about 2%, abbott labs up 1.3%., back to you. >> all right, courtney, thank you. >>> just a short time ago here on "closing bell," mylan's ceo, heather bresch, talked about buying abbott labs' generic drug business. the deal will enable mylan to reincorporate in the netherlands and cut its u.s. tax bill. bresch defended the move in our interview. >> 50% of the drugs that are taken in our country, consumed by our consumers are made overseas. >> what's interesting, why don't you want to talk about the tax inversion aspect of this? do you feel as though -- do you feel that's a sensitive issue? >> no. i want to talk about it. it's just i don't want the strategic rationale of the deal to get lost. >> but you understand why we're asking. i mean, the timing. there are so many other companies, so many other deals going on right now that all have the same effect on the tax base of those companies like yours right now. it can't be a coincidence, i wouldn't think. >> no, and i would like the conversation in my mind to switch t

i want to get toy mylan, another tax inversion, in this case, abbott, mylan issuing 5.3 billion in stockabbott to buy the nonu.s. developed market specialty in brand of generics business. what is that? that's $1.9 billion of revenue, 75% of it's in europe against developed markets, the rest in japan and the like. talking about $60 million in ebida. end up in the netherlands but choose tax jurisdiction, look for that to be the uk or ireland. all right. we've got the whiting deal where it's a takeunder right now. >> takeunder but it becomes the king of the bakken, people like that. >> paulson's the big holder in kodiak at 10%. it doesn't appear that he's voting in favor. there is some question here, jim, to whether they're able to get the shareholder vote at kodiak. some analysts weighing in and saying they are buying at least you know, this was a 5% premium to their 60-day volume weighted price average. a discount to where the stock just changed hands. will whiting have to increase the acquisition offer, at least a question mark in terms of looking where previous deals have been done. it

drugs to mylan for $5.3 billion in stock.een a lot of speculation this could eventually turn into another inversion deal. it's not even speculation, it is what it is where mylan would move its tax home out of the united states. as you know i have problems with this. and the other piece of it is all of us taxpayers, medicare, medicaid we're paying this company and now they're deciding to leave us. and they will ultimately figure out ways to pay less taxes. they will pay taxes in the united states, but on the stuff they sell here but clearly not nearly the same amount, and then all the shenanigans that people use back and forth about how to move that money. so, i don't know. i know you're fine with it. i don't know why you're fine with it. >> i'm fine with it because it's all legal and under the law. and if they want to prevent this from happening, obama, instead of -- >> the government needs to do something about it. >> -- grandstanding on all these issues that seem to me of lesser importance. >> i agree. we need tax reform. >

>> well, tax inverngs has been a good thing for mylan.good for the company's ability to continue to do an organic deals.it's good for the ability to continue to do an organic deals. it could spill an excess of that, this is not a simple transaction. and we think there are other places to put one's incremental dollar of the near term. >> see one of the major factors to come out of this exclusive interview we had last night is that he's pushing for a surgical piece of legislation that could go through both houses that says if you want to do a tax inversion, we raise the threshold from 20% for an ownership to 50% in order for that to go through. are you worried that perhaps the window might be missed on mylan. we have a finite opportunity here? >> no, that's not what i'm talking about. i'm talking about, i'm talking about a situation where mylan is acquiring, not acquiring another company, it's acquiring the division of abbot's business, and that's what makes this deal transaction, this deal, this transaction take longer to occur. i do, i do

. >> next up, mylan announcing it'll buy abbott laboratories brand outside the u.s.5.3 billion. the new deal will bolster the product line and, of course, cut its tax bill. >> just another example of why inversions help, why it's only a piece of the pie. there's a lot of other things that go into these types of deals. but the company shouldn't be put on trial while they're doing an inversion. it's totally legal and it's evidence the ceo said it earlier on cnbc. if our congressmen need to get together and have true corporate tax reform. don't blame the company for doing what's in the best interest of shareholders. >> that's another tax potential deal. >> that seems to be a much bigger issue. how do we have this tax policy that's so punitive. more than almost any other country in the world. i don't know how this isn't getting to be sort of crisis already. you know, there's a lot of -- there's a lot -- tons, billions and billions of dollars offshore. >> and let's not forget this deal makes sense anyway. it makes sense and it's not expensive on a tax conversion scale, so

. >> reporter: drug maker mylan bought assets from abbott that will allow it to cooperate in the neither lands and benefit from a lower tax rate. miles white today stirred rumors it may be the next to do a deal when he took a stand on corporate inversions in the wall street journal. analysts say the abbvie share deal has other implications, companies that make drugs for rare or orphan diseases. shire has been building up that part of the business and abbvie is expected to continue to do deals in the space. >> abbvie paid so much because of the rare disease orphan franchise. it's half the company. both drugs are priced very, very high. they generally provide high benefit to the patients and therefore there is limited pressure to controt the prices of the drugs. it's a very attractive business on the perspective of drug companies. >> reporter: drug makers from several companies have potential acquisition targets. it spells more deal making. for "nightly business report", i'm meg terrell. >>> shares of abbvie and shire rose today. abbvie up 2.5%. >>> our market monitor has a list of stocks

a london based astra zeneca and companies like minneapolis based medtronic send pennsylvania based mylan have announced plans to move their legal addresses outside of the us as well inversions u.s. based companies purchased a foreign company and then switched the legal address to take advantage of the foreign jurisdictions more favorable tax laws however in many cases the companies executive team remains in the u.s. the obama administration has proposed initiative that would make it effectively impossible for a u.s. based company to purchase a smaller foreign competitor. simply to take advantage of that organization's address the proposal would save seventeen billion dollars over the next decade according to the administration so it's not peanuts now j.p. morgan c.e.o. jamie dimon has weighed in on the issue as well saying he's very much ok with companies using tax avoidance tactics if it's done in the name of serving investors and saving them tens of billions of dollars he said the real problem is that the tax code is just too complicated and it's not c.e.o.'s trying to shirk their resp

. >>> mylan is set to buy some of abbott laboratories generic drug business outside the united states. >> this deal is valued at about $ $5.3 billion. but what everyone is talking about is how that deal was structured to help mylan by moving its tax implications outside. >> this deal made sense to us. top line, bottom line, cash flow, financial flexibility, letting us tee up for some transactions that we think make a lot of sense. it puts infrastructure in place so future deals can be synergist synergistic. i don't know that it would have still looked the same, but it would have absolutely made sense. >> so the ceo telling cnbc that yes, there is a tax advantage here, but a very strong strategic rationale, as well, for the deal. back to you. >>> today is the deadline for companies and the public to weigh in on the fcc's controversial net knew translate rules. so far, the fcc has received more than 600,000 comments. google, amazon and netflix are opposed to this pay for priority idea. and scores of companies say the proposal will hamper their growth. >>> microsoft is reportedly plannin

this month mylan would announce it was invest in the netherlands, critics criticize these tax inversionsng these companies are renouncing their american citizenship. now "national journal" has a new interview out with senator joe manchin, which he says of the daughter's tax inversion, i think basically inversion should be absolutely repealed, all of them. get them all. the senator apparently not agrees with his daughter ace decision. heather bresch was on cnbc's cloib been last week before her father's react. >> a% remained overseas, so our country had no problem opening the borders and saying we want all the competitiveness we can get for our consumers, for everything else. what our country failed to do was keep pace and make our country globally competitive for corporations. if we want to sit here and have a discussion about how do we handcuff u.s. corporations to the united states? i think that's impractical and quite frankly ridiculous. >> tyler, as you know, these tax inversions are so controversial right now, i know i will be watching tomorrow when our steve liesman interviewed pre

recalled last month, the drugmaker mylan made a deal to buy a company outside of the u.s.low it to incorporate from the current location in the u.s. to the netherlands. medtronic is looking to avoid paying higher u.s. taxes as well. secretary lew says there's nothing wrong with cross-border merger activity and the economy is stronger for an investment overseas and for foreign investment in the united states as well, but he stresses economic efficiency not tax savings should be the issue. and he says he hopes that congress will pass anti-inversion legislation as soon as possible. also remember, for legislation to be effective, lew says it must be retroactive. and while lew says closing the loophole is no answer to comprehensive tax reform, he says it's a necessary step toward the path for an efficient tax system. >>> tech is the talk of the up to. we'll take a look at the key corporate reports coming up this week right after the break. stay with us. >>> let's take a look at one of today's top stories. israel has ended a humanitarian cease-fire in gaza saying they are ending

. >> the ceo of mylan is the daughter of a u.s. senator. >> so?oint is, if she is willing to go abroad with her company, to get lower taxes, that's an issue. >> work with me. change the law. people were saying yesterday, the president has said he wants to do that. he's going to leave office without having done this. >> i agree. >> and out of all the other things he's tried to lead on, he's going to leave office and this is not -- why? >> the catch is, that he wants a 28% at the top, 25% for manufacturing. it's still too high because you look at a company like mylan, they're going to get into the high teens. >> why can the left not see a connection between a robust private sector and more jobs? >> it's not that i don't think that they see it, it's that me don't understand what is the possible number that makes sense because it becomes this race to the bottom. let's say you go to 20%. then you have to decide, you know, two years later, if the netherlands, which is giving her the high teens is going to stay at 15. so fine, we'll watch the global rate

doesn't have the same tax regime that mylan does so we have to go do this. is that right?t, if they don't do the deal are they going to get taken over by foreign competitor? is that a real argument? >> here's the thing -- >> you're in the middle of it. >> it is a global industry. right? everybody is competing for the same people, the same r&d, the same opportunities, and fundamentally, u.s. companies, u.s.-based companies, are at a disadvantage because of our tax code. >> right. >> and the less money that's paid in taxes, the moren inny that goes to innovation. and i think that it is a scathing indictment of our tax policy that we are losing companies that are fundamentally global innovators because we can't get our tax strategy right. and i don't think that we have to be at the same level as ireland. but by the same token we are just so fundamentally out of whack. you know, pfizer has 46 billion dollars in unrepatriated earnings outside of this country. abbvie is now going to be able to access $10 billion of their own capital. >> if you're talking about something more tha

. >> that's what the mylan deal? >> why does it seem to be so much a pharma space right now?to be the big one? >> it seems to just be momentum. if you're camped with all your peers on a quarterly basis and your peers start to have a tax rate in the teens you better do that really quickly. >> isn't it also to do with intellectual property because a lot of their value is in intellectual property on the patents are, you know, they're drugs and the taxation of that is somehow more beneficial to them to go overseas than it would be for another, you know, manufacturer or something? >> go ahead. >> not only that but these companies are all multinationals. they have a lot of sales overseas already. they have a lot of foreign cash. easy to access. >> so pharmaceutical companies seem to have not been changed into not doing this. walgreens is still hanging out there. that's a little bit of a different company, has more of an americana feel. you saw dick durbin come out, home state. do you think that deal ends up happening with the lion's foods? >> of course to the point of alliance they

. >> senator manchin and heather, his daughter, who runs mylan which did a deal. >> yeah.. >> all right. steve, looking forward to the interview. thanks very much for the preview and we'll be watching into meantime -- there you go. exclusive interview, steve liesman, 5:00 p.m. on cnbc. >>> and walmart is announcing that its chief is leaving. the rumor mill and speculation mill was running about where bill simon will end up. we can confirm that he has a two-year noncompete. if you were looking for him to go to one of the many vacant roles of ceo of a u.s. retailer, it doesn't appear that bill simon will be doing that. for more on what all of this means for walmart, courtney reagan is at hq. >> it's not really a huge surprise to bill simon because it was widely known that he wanted the top job, the c eceo the entire company. sam simon's last day will be august 9th. greg foran will replace him. he came to the u.s. in 2011 to run the china division and was previously with australia. he ran all of the international business and he's had a lot of confidence in mr. foran. however

ago, because it was this spin version, is what they call it asset dropdown, now two more times with mylanthe abbott labs subsid dears why potentially the hospira deal with danone. they're like, they don't feel great about. to generate enormous profits from the sale because you have anxious companies willing to do an inversion. >> did you respond to cuban's tweet, any company that does this, i'm selling your stock immediately. >> i'm responding the business is to try to get rich, one of the things i've thought about mark, i've known mark since the '80s, cubans wants people to be wealthy. one thing people cheer for cuban -- i believe that -- but cuban wants people to be wealthier. >> i'm a man of mark's, always have been. >> cuban is -- doesn't like what's happening except if you own the shares and he said point blank, it's great for shareholders until they close the loophole. >> if you're an individual shareholder, it generates capital gains tax, a new corporation, paying capital gains. the fact is, most of the companies are owned by institutions, they don't care, just gets passed along. i

two days ago, mylan's ceo was here explaining why she is doing that.ry secretary jack lew shared his view, which he also conveyed in a letter to congress, where he wants companies to stop it right now. >> on this question of inversions? i used language in my letter that's pretty strong. i said, we should have some economic patriotism here. it's not right to take an american firm to benefit from all of the things that we do in the united states to make it a safe place to do business, but then to say i don't want to pay taxes here, to shift my corporate address overseas to pay a lower tax rate or no taxes. >> so, as the tax inversion heats up, joining us now with more reaction to what policymakers should do, if anything, larry kudlow, cnbc contributor and frank lamente with americans for tax fairness. welcome to you both. larry, where do you stand on this issue? >> look, i think lew is completely wrong. his language is offensive. this business about patriotism is nonsense. what he just said, he said they don't pay taxes? the trouble is, we are not compet

companies recently involved in this, hospera, is under pressure because it's in the generics business and mylanhe generics business have already made this move. there's the theory that's one piece of this. there's what's happening is the other piece. and whether your legislation will really do anything retroactively to have stopped these companies or starting now. will the whole congress be able to get behind you on this bill or on any others to come to keep this from happening? >> well, understand, we are modifying or changing a law that's been on the books for ten years. what the law said was very basic. if you are an american company that's given up your american corporate citizenship to lower your tax rate, so-called inversion, then you're disqualified from bidding on federal government contracts. it's pretty obvious why. if you don't want to pay the taxes to sustain this government and this nation, why should you be profiting from this government's business by bidding on it? we want to give the advantage to american companies that are based here and have their employees here. this bill tha

we're not going to split up manufacturing versus -- >> the other problem, though, you look at a mylan, there's a large question whether 20% gets you where you want to go. >> and be the way, you'll see what happens with that this summer. >> it's a chicago-businessed company. we'll see what happens. >>> competing it globally, can we tax shape holders? >> i agree with you on revenue. the job creation -- >> you could do it. you could do it. but i don't think -- it would free up the private sector. >> i don't agree with going to taxes to zero. >> why not? >> because i think corporations should pay something. because they drive around on roads? >> they are people. they are people. >> they are composed of people. >> i also think it's unreasonable to think year going to get from 35 to zero. i think if you can bring it down to 24%, sure. >> it's not about these desks and these computers, it's about you, andrew. we'd better go on. i think i'm going to have to take this off. >> it is warm. >> it is hot in here. now back to the big tech story of the morning, oh, did i catch my brazier? >> mr. rog

burkeon twitter, mylan writes his comments about the affordable care act -- "another hearing on the aca? hearings,ngs, more more money, no results. fire the people in charge -- the republicans." .et's go to armand in lakeland caller: good morning. i just want to put the kids aside here it puts them aside. this country can put -- can take care of all the kids in the country. if we take care of the border, we would be able to see all the kids and adults coming through. i would love to talk to the gentleman who just got off c-span and ask him when he decided that the verified -- that the e verify program would not work. it would work. the problem is that all small businesses are too big to fail right now because they have the cheap labor. it iseap labor -- democrats and republicans because if you listen to everybody, everybody wants comprehensive immigration. they want to let all the illegals here now stay in the country and get themselves status so they can work. that is for all small businesses of too big to fail. guest: let me jump in and say that comprehensive immigration , inrm would

and i keep using the issue of mylan, top right 35%. you say you pay 33%.the ceo of that company she's paying 25%. >> you're talking corporate taxes now. >> corporate taxes. people at you know, obama's, his top rate is 28% manufacturing, 25%, he's proposing two different rates you talked about 20%. she thinks that she can get her company down into the teens. and then the question is, is 20% -- does 20% become the right number? and then what do you do? >> you wouldn't move a company for three points. >> i think it's more than what the rate is. it's what makes it up? so i mean there are some people who have some benefits, you know, there's acceleration of whatever. right. and when you start talking about rate, that's only one part of the debate. because, -- >> that's why it's so hard. >> this is very difficult to do. think how many times in this country we've gone through tax reform. and what was it, 86 the last time? these are very hard things. >> and took a couple of years to get it together from 1986. it didn't happen overnight. >> you'd need a very engage