Walgreens has come under pressure from an influential group of its shareholders, who want the US pharmacy chain to consider relocating to Europe, in what would be one of the largest tax inversions ever attempted. At a private meeting in Paris on Friday, investors owning close to 5 per cent of Walgreens' shares lobbied the company's management to use its $16bn takeover of Swiss-based Alliance Boots to re-domicile its tax base.

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The move, known as an inversion, would dramatically reduce Walgreens' taxable income in the US, which has among the highest corporate tax rates in the world. The investor group, which included Goldman Sachs Investment Partners and hedge funds Jana Partners, Corvex and Och-Ziff, requested the meeting after becoming frustrated by Walgreens' refusal to consider relocating, according to people familiar with the matter. More from the Financial Times:

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In a note last month, analysts at UBS said Walgreens' tax rate was expected to be 37.5 per cent compared with 20 per cent for Boots, and that an inversion could increase earnings per share by 75 per cent. They added, however, that "Walgreens' management seems more hesitant to pull the trigger near-term due to perceived political risks." Friday's meeting was attended by Greg Wasson and Wade Miquelon, Walgreens' chief executive and chief financial officer, respectively, and Stefano Pessina, the Italian billionaire chairman of Alliance Boots.