Abbott seeks to end buyout deal for Alere
Abbott is seeking to terminate its buyout of troubled medical diagnostics maker Alere as that company deals with the fallout of a key device recall and government investigations.
Abbott Laboratories agreed to buy Alere Inc. in February for $56 per share, or $5.8 billion, in a move to expand its medical device offerings. Since then, Alere, based in Waltham, Massachusetts, has recalled a key monitoring device, delayed a key financial statement, and is being investigated over its overseas businesses. Its stock price has since fallen more than 25 percent.
"Alere is no longer the company Abbott agreed to buy 10 months ago," said Scott Stoffel, Abbott's divisional vice president of external communications.
Abbott filed its complaint to end the deal in the Delaware Court of Chancery.