Abbott Laboratories (NYSE:ABT) has brought down the cost of its acquisition of the diagnostics maker Alere (NYSE:ALR), but some might say that it is still overpaying. First announced at a price of $56 per share for a total value of around $5.8bn, the deal will now go ahead at $51 per share, or $5.3bn.
This marginal reduction in the financial outlay comes despite Abbott's seemingly strong case that a material adverse change had occurred in Alere's long-term prospects, following missteps including missed reporting deadlines, two separate US Department of Justice investigations and a market withdrawal of one of its technologies amid accuracy concerns. Abbott must now focus on making this deal work - or strengthening its operations in other areas to compensate.
