Alere Hit With Another Federal Subpoena, Casting More Doubt On Abbott Deal
The company says the matters under investigation are immaterial, but the stock market disagrees, taking about a billion dollars from embattled diagnostics company in under a half-hour.
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Abbott announced plans to purchase Alere in January, but the merger has so far been delayed by, Alere alleges, Abbott's foot-dragging. Abbott, meanwhile, points to federal investigations that have delayed Alere’s financial filings.
Abbott's confidence in the planned $5.8b deal has declined since the acquisition was announced in January following disclosures of investigations into Alere's business practices. Alere hopes the suit will prod Abbott to speed its efforts to secure regulatory approvals for the merger.