Abbott Laboratories said on Wednesday that it had moved to terminate its proposed acquisition of Alere, citing a “substantial loss” in the value of the diagnostics company since they struck a deal 10 months back.
Abbott filed a complaint in the Delaware Court of Chancery to kill the deal it struck with Alere in late January, worth $5.8 billion at the time.
“This is likely posturing by Abbott to set up a scenario where a price cut could be arranged,” Canaccord Genuity’s Mark Massaro told Reuters.
He said Abbott’s best bet would be to create uncertainty to drive Alere’s stock lower so the company’s shareholders would agree to a lower price. Alere is slated to hold its annual meeting on Thursday.
Since the two companies announced the deal, Alere has faced multiple setbacks, while Abbott in April struck a deal to buy heart device maker St. Jude Medical for $25 billion.
Full Content: Fortune
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
T-Mobile Faces Class-Action Lawsuit Over Sprint Merger After Appeal Denied
May 16, 2024 by
CPI
Google Faces Backlash Over Introduction of AI-Generated Summaries in Searches
May 16, 2024 by
CPI
CMA Launches Phase 2 Probe into AlphaTheta’s Acquisition of Serato
May 16, 2024 by
CPI
NFL Executive Escapes Testifying in High-Stakes Trial Over Televised Games
May 16, 2024 by
CPI
EU Consumers Lodge Complaint Against Chinese Retailer Temu Over Content Rules Breach
May 16, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI