Alere sues Abbott to complete merger

Diagnostics company Alere has filed a complaint against Abbott in the Delaware Chancery Court in an attempt to compel Abbott to fulfil its obligations surrounding the companies’ merger agreement.

After entering an agreement with Alere to buy the company for $5.8 billion, Abott reversed its position and attempted to pay $50 million to get its way out of the agreement.

Alere said in a statement: “Alere will take all actions necessary to protect the interests of Alere shareholders, enforce Alere’s rights under the merger agreement and compel Abbott to complete the transaction in accordance with its terms.”

Alere rejected the $50 million proposal back in April, and the company is now suing Abbott to force it to complete the agreement.

As reported by Fierce Biotech, the $5.8 billion acquisition was first announced in March, followed by Abbott wanting to terminate the deal due to concerns regarding a foreign corruption investigation into Alere’s international business practices. Alere disclosed that it is under investigation over payments in Africa, Asia and Latin America.

Abbott is also in the process of trying to acquire medical device maker St Jude Medical for $25 billion.