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US: Judge halts C&J inverse merger

 |  November 25, 2014

A federal judge has placed a temporary stay on C&J Energy Service’s proposed merger that would allow the energy company to relocate its tax bracket and benefit from lower tax rates, say reports.

Delaware Chancery Court Judge John Noble ruled Monday that C&J cannot be acquired by the energy units of Nabors Industries, based in Bermuda, for at least 30 days. The deal was reached between the companies for $2.86 billion.

Judge Noble has now ordered C&J to shop around for other bids, say reports; C&J disputed the decision and vowed to appeal the matter to the Delaware Supreme Court, according to reports.

The legal dispute continues as federal officials around the globe debate the fairness of such inversion deals.

Full content: Businessweek

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