LONDON: Abbott Laboratories agreed to buy diagnostic-testing company Alere Inc for $4.4 billion (£3.52 billion), ending a prolonged legal battle over Abbott’s plan to buy the company, the Financial Times reported, citing people close to the matter. Abbott will pay $51 per share, a premium of 21 per cent to Alere’s closing price on Thursday, but below the earlier $56 per-share price announced in February last year.
Abbott had raised concerns about the accuracy of various representations, warranties and covenants made by Alere in last year’s $5.8 billion merger agreement, and offered to pay $30 million to $50 million to terminate the deal. Abbott Laboratories had moved to terminate its proposed acquisition of Alere, citing a “substantial loss” in the value of the diagnostics company since they struck a deal in February 2016. European Union antitrust regulators cleared Abbott Laboratories’ proposed acquisition of Alere on January, subject to the divestment of some of Alere’s operations. — Reuters
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