Burger King Is Going Bananas

Burger King shares were up 13% in pre-market trading Monday after reports they were in talks to buy Canadian donut giant Tim Horton's in a deal that would see their headquarters move to Canada to avoid U.S. taxes.

The Wall Street Journal reported late Sunday that the home of the Whopper was hoping to execute a "tax inversion" deal that would allow for savings on foreign earnings and cash, and in some cases a lower overall corporate tax rate.

Tax inversion deals have surged this year as cash-flush companies prioritize acquisition targets beyond the reach of U.S. levies. The Obama administration is well aware of the scheme and has urged Congress to pass legislation that would disincentivize businesses from trying to pull it off. Here's the chart:

Tim Horton's was also up 14% in Monday trading before the bell. If consummated, the deal would create the world's third-largest fast-food chain.