Abbott CEO Creates Doubt Surrounding $5.8B Alere Deal
Abbott Laboratories Inc.'s CEO declined to comment on whether the company was committed to buying diagnostics company Alere Inc, fueling speculation the deal might not close, according to a Reuters article.
In February, Abbott Labs announced it would buy Massachusetts-based Alere, manufacturers of point-of-care testing for infections such as HIV, tuberculosis, malaria and dengue. In March, Alere ran into trouble, receiving a grand jury subpoena from the U.S. Department of Justice seeking documents relating to its sales practices in Africa, Asia and Latin America.
Alere's stock fell about 18 percent to $40.51 after Abbott CEO Miles White would not reply directly when asked whether he would reaffirm Abbott's plans for the $5.8 billion deal.
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