After more than a year after its February 2016 announcement, Abbott Laboratories has reached an agreement to close its acquisition of Alere Inc for $5.3 billion, down from an initial $5.8 billion price.
According to Alere, shareholders will get $51 a share in cash in the deal. Abbott's lawsuit to terminate the Alere purchase was set to be deliberated in Delaware Chancery Court this week.
The first peep of trouble was noticed last April, when the Abbott CEO declined to comment on whether the company was committed to buying the diagnostics company, fueling speculation the deal might not close. At the same time, Alere had received a grand jury subpoena related to its sales practices. This was followed by Abbott suing Alere for violating the terms of their agreement, while Alere filed a suit attempting to push the deal through.
While Abbott integrates Alere into the company, Alere remains under investigation for allegations of bribery and weak income taxes accounting.
Read the Bloomberg report