LeaderBoard JAZZ PHARMACEUTICALS, 79% AZUR PHARMA, IRELAND BEFORE 40%; AFTER 25% ALKERMES, 75% ELAN DRUG TECHNOLOGIES, IRELAND BEFORE 26%; AFTER 18% With its new tax home, antipsychotic-drug maker Alkermes is itself a tempting inversion target. TRONOX, 62% EXXARO MINERAL SANDS OPERATIONS, AUSTRALIA Pigmentmaker Tronox secured a new tax home in Australia by buying the mineral sands unit of South Africas Exxaro. TOWER GROUP, <80% CANOPIUS HOLDINGS BERMUDA, BERMUDA Since announcing plans to invert, Towers stock has fallen from nearly $18 to $2 amid widening losses, an SEC investigation and a planned buyout by insurer ACP Re at a price that has dropped to $2.50 a share. LIBERTY GLOBAL, 64% VIRGIN MEDIA, U.K. BEFORE 26%; AFTER 21% U.S. COMPANY, % OF MERGED COMPANY OWNED BY U.S. PARTNERS SHAREHOLDERS FOREIGN MERGER PARTNER, NEW TAX HOME ESTIMATED EFFECTIVE TAX RATE: BEFORE MERGER %; AFTER MERGER % EATON, 73% COOPER INDUSTRIES, IRELAND BEFORE 9%; AFTER 1% While Cooper Industries execs still worked in Houston, it reincorporated in Bermuda in 2002 (when such a non-merger- related move was still legal). It moved to Ireland in 2009. Eatons top brass still work in Cleveland. 7% 6 5 4 3 2 1 0 $160 140 120 100 80 60 40 20 0 2010 2011 2012 2013 2014 $1 BIL $1.3 BIL $585 MIL $75 MIL INVERSION M&A ($BIL) % OF GLOBAL M&A $13 BIL $4.9 BIL Tax Dodgers Inc. Spurred on by fee-hungry investment bankers and fearing a congressional crackdown, U.S. companies are rushing to do inversions: merger deals with foreign com- panies that allow them to reincorporate in a country with lower corporate income taxes. Already 2014 has seen about 55% of all inversion deals (in dollar value) since 1996, with Burger Kings bid to swallow Canadas Tim Hortons doughnut-shop chain the latest to make news. Besides cutting tax on future earnings, inversion allows a multinational to tap into past prots and cash stockpiled overseas while avoiding U.S. tax. The circles show the size and status of inversion bids: Gold are done deals, blue are pending, and gray have fallen apart. The U.S. company is in black, as is the share of the merged company its cur- rent shareholders will own; it must be less than 80% for the tax trick to work. Foreign partner and new tax home country are in red. Estimated before-and-after efective tax rates, if available, are in blue and gold, respectively. INDUSTRY ATLAS FEE FRENZY Inversion volume has skyrocketed as Wall Street rushes to cash in at a window that could be slammed shut. VALUE OF DEAL PENTAIR, 48% TYCO, SWITZERLAND BEFORE 29%; AFTER: 25% Source: Credit Suisse. 2011 2012 2013 2014 SEPTEMBER 29, 2014 FORBES | 19 LeaderBoard ACTAVIS, 77% WARNER CHILCOTT, IRELAND BEFORE 39%; AFTER 17% Its new Irish tax home helped generic-drug maker Actavis acquire Forest Laboratories less than a year later. OMNICOM GROUP, 50% PUBLICIS GROUPE, U.K. The deal to create the worlds largest ad company collapsed in May amid clashing egos and European regulators concerns over the plan to incorporate the merged rm in the Netherlands while making the U.K. its tax home. PERRIGO, 71% ELAN, IRELAND BEFORE 30%; AFTER 20% APPLIED MATERIALS, 68% TOKYO ELECTRON, NETHERLANDS BEFORE 26%; AFTER 17% ENDO HEALTH SOLUTIONS, 78% PALADIN LABS, IRELAND BEFORE 29%; AFTER 20% HORIZON PHARMA, 74% VIDARA THERAPEUTICS, IRELAND CHIQUITA BRANDS INTERNATIONAL, 51% FYFFES, IRELAND This combo will be the worlds top banana producer, selling 160 million boxes a year. QUESTCOR PHARMACEUTICALS, 49.5% MALLINCKRODT, IRELAND Hedge fund billionaire John Paulson, the largest shareholder of Mallinckrodt, pushed for the deal, which is expected to lower Questcors tax rate by 10%. AUXILIUM PHARMACEUTICALS, 76% QLT, CANADA WALGREEN ALLIANCE BOOTS, SWITZERLAND On Aug. 6, when Walgreen caved to pressure and said it wouldnt move its tax home (as planned) to Switzerland, its stock fell 14%. BURGER KING WORLDWIDE TIM HORTONS, CANADA A new Canadian tax home should help the King tap about $500 million in past foreign prots, without a U.S. tax hit. MYLAN, 79% ABBOTT NON-U.S. DEVELOPED MARKETS, NETHERLANDS SALIX PHARMACEUTICALS, <80% COSMO TECHNOLOGIES, IRELAND FOREST LABORATORIES, 35% ACTAVIS, IRELAND MEDTRONIC, 70% COVIDIEN, IRELAND BEFORE 20%; AFTER 16% ALLERGAN, 44% VALEANT, CANADA ABBVIE, 75% SHIRE, U.K. BEFORE 22%; AFTER 13% PFIZER, 74% ASTRAZENECA, U.K. While ghting of Pzer, AstraZeneca fanned the anti-inversion ames in Washington. But with at least 70% of its $49 billion cash hoard abroad, Pzer is still looking to invert. $24 BIL $19.3 BIL $28 BIL $47.9 BIL $55 BIL $53 BIL $122.3 BIL $14.5 BIL $14.1 BIL $8.5 BIL $8.6 BIL $9.3 BIL $5.8 BIL $5.3 BIL $2.7 BIL $505 MIL $660 MIL $1.5 BIL $2.7 BIL Sources: Thomson Reuters; Credit Suisse; Tax Analysts; company reports. B Y