ABBOTT PARK, Ill., Dec. 7, 2016
/PRNewswire/ -- Abbott (NYSE: ABT) has filed a complaint
to terminate its proposed acquisition of Alere based on the
substantial loss in Alere's value following the merger
agreement.
In the 10 months following the Jan. 30,
2016, signing of the agreement, Alere has suffered a series
of damaging business developments, including the government
eliminating the billing privileges of a substantial Alere division,
the permanent recall of an important product platform, multiple new
government subpoenas, including two new criminal subpoenas, and a
five-month delay in filing its 10K coupled with admissions of
internal control failures requiring restatement of its 2013-2015
financials.
"Alere is no longer the company Abbott agreed to buy 10 months
ago," said Scott Stoffel, divisional
vice president of external communications, Abbott. "These numerous
negative developments are unprecedented and are not isolated
incidents brought on by chance. We have attempted to secure details
and information to assess these issues for months, and Alere has
blocked every attempt. This damage to Alere's business can only be
the result of a systemic failure of internal controls, which
combined with the lack of transparency, led us to filing this
complaint."
Under terms of the merger agreement, Abbott may terminate the
transaction if adverse events materially change Alere's long-term
prospects. Abbott filed its complaint seeking termination in the
Delaware Court of Chancery, citing
these events among others as material adverse events.
About Abbott:
Abbott is a global healthcare company devoted to improving life
through the development of products and technologies that span the
breadth of healthcare. With a portfolio of leading, science-based
offerings in diagnostics, medical devices, nutritionals and branded
generic pharmaceuticals, Abbott serves people in more than 150
countries and employs approximately 74,000 people.
Visit Abbott at www.abbott.com and connect with us on Twitter at
@AbbottNews.
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SOURCE Abbott