Abbott Seeks to Terminate Alere Deal
December 07 2016 - 12:54PM
Dow Jones News
By Tess Stynes
Abbott Laboratories said it has filed a complaint in court
seeking to terminate its $5.8 billion deal to acquire
diagnostic-test company Alere Inc., stepping up a battle between
the two companies.
"Alere is no longer the company Abbott agreed to buy 10 months
ago," Abbott communications executive Scott Stoffel stated in a
news release. Abbott said it has filed the complaint with the
Delaware Court of Chancery.
An Alere spokeswoman wasn't immediately available to
comment.
Abbott reasserted that several negative developments have
diminished Alere's value since the deal was reached in late
January, adding that Alere has blocked Abbott's efforts to obtain
more details about the issues. These include the government
eliminating billing privileges at Alere's diabetes unit, a product
recall, government inquiries and the late filing of its 2015
financial results.
Abbott agreed to acquire Alere in late January, a deal Abbott at
the time expected would make it a leading provider of point-of-care
testing.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
December 07, 2016 12:39 ET (17:39 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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