Merck settles tax dispute with IRS for $2.3B

NEW YORK (Reuters) -- Drug maker Merck & Co. said Wednesday it agreed to settle tax disputes with the Internal Revenue Service at a net cash cost of about $2.3 billion.

Merck said it previously allocated reserves for the tax items, and the settlement should not have a material effect on its earnings in 2007. The agreement covers tax disputes for the period 1993 to 2001, the company said.