Abbott CEO Creates Doubt Surrounding $5.8B Alere Deal

Apr 20, 2016

Reuters

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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