US: Abbott agrees to buy Alere at lower price from earlier offer

Diversified healthcare company Abbott Laboratories agreed on Friday to buy Alere at a lower price than was previously offered, after raising concerns about the accuracy of various representations, warranties and covenants made by Alere in the earlier agreement.

Abbott’s revised offer values Alere’s equity around $5.3 billion, down from the $5.8 billion announced in February of last year, the companies said in a statement, ending a prolonged legal battle over Abbott’s plan to acquire the diagnostic-testing company.

Abbott will now pay $51 per share for Alere, compared with its earlier offer of $56. The new price was a much better outcome than what Alere’s shareholders had priced in, given that Alere’s shares closed at $42.31 on Thursday on the New York Stock Exchange.

Abbott and Alere said on Friday that the companies had agreed to dismiss their respective lawsuits, and the deal is expected to close by the end of the third quarter of 2017.

Full Content: Reuters

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