The $5.8bn deal to acquire Alere by Abbott Laboratories will be cancelled as Abbot filed a suit citing issues such as bribery and erroneous billing practices.
Editor’s Remarks: The deal was originally signed in January. However, since then, Alere has been the subject of several investigations by the US government. From bribery to being excluded from Medicare, Alere seems to be riddled with problems. This information has no doubt severely impacted the value of Alere and Abbott is hoping that that will be enough to terminate the deal. While Alere is still hoping the deal will pass, the reality is that Abbott will manage to dodge a bullet.
What to watch: Alere, Abbott, St. Jude, Teva, Roche