Stanley Works Drops Bermuda Plans

Succumbing to pressure from Congress, Stanley WorksSWK dropped plans to relocate to Bermuda.

The toolmaker's shareholders approved reincorporating to the tax haven in May but the company has faced growing opposition ever since, particularly in Congress, where the matter become a lightning rod for the cause of tax reform. The shareholder vote was later thrown out for technical reasons.

John Trani, Stanley's chief executive, said congressional leaders had asked the company to support legislation to "create a level playing field."

"We have honored their request, and the ball is now in their court," he told the Associated Press. "Ignoring this problem will not make it go away, but can only accelerate the trend of fewer U.S. headquartered companies."

Legislation is currently pending in the House that would ban government contracts to firms that recently moved their headquarters abroad. Companies that recently decided to move to Bermuda include AccentureACN, Nabors Industries NBR, WeatherfordWFT and Cooper IndustriesCBE.