Walgreen drops on report it will keep U.S. tax base

Shares of Walgreen Co. have tumbled on media reports that the drugstore chain will not reincorporate itself overseas — a politically touchy move that could significantly lower its tax bill.

Walgreen owns a 45% stake in Alliance Boots, the largest drugstore chain in the United Kingdom. The company has said it will soon announce whether it will acquire the remaining stake of the company and use an organization technique called an inversion to take advantage of the U.K's lower corporate tax rate.

U.K. media reported Tuesday that the Deerfield, Ill.-based company will indeed acquire the British chain, but without moving its tax base overseas.

A Walgreen spokeswoman said Tuesday she could not immediately comment on the report.

Dozens of U.S. companies have completed inversions in recent years.