Abbott Laboratories still isn’t happy about its proposed $5.8 billion acquisition of health care diagnostics company Alere after Alere’s belated release of its annual report Monday.
Abbott already had tried unsuccessfully to get out of the deal after Alere revealed a U.S. investigation into foreign corruption involving its sales practices in Africa, Asia and Latin America. Abbott first announced the deal in February.
Abbott Park-based Abbott said in a statement Monday that Alere’s filing does “not eliminate Abbott’s concerns about its business controls and practices given the litany of issues that have come to light since our agreement was announced.
“Alere has also failed to provide an adequate explanation for the extended filing delay and has refused to provide detailed and relevant information on several outstanding issues,” Abbott said in the statement.
Attempts to reach Alere for comment on Abbott’s worries were not immediately successful Monday.
The U.S. Department of Justice also sent Alere a criminal subpoena last month related to government billings and payments made to physicians at Alere’s Austin, Texas, pain management laboratory, according to Alere’s filing with the U.S. Securities and Exchange Commission on Monday.
Alere said in its annual filing that it released its results late because it was investigating its practices related to certain transactions. It found errors in 2013, 2014 and 2015 that did not affect revenue, according to the filing.
Alere CEO Namal Nawana said in a news release that the company made “immaterial revisions” to its financial statements for those years. Alere did, however, also find “material weaknesses” in some internal controls.
“We are in the process of implementing a remediation plan and remain committed to providing accurate and transparent financial reporting,” Nawana said in the release.
Alere had to release its annual report before its shareholders could vote to approve the Abbott deal.
As part of the original deal, Abbott had agreed to take on $2.6 billion of Alere’s debt and pay $56 a share to acquire the Waltham, Mass.-based company, which specializes in tests used in doctors’ offices and clinics to diagnose disease and infection. Abbott said at the time the deal was announced that its total diagnostic sales would exceed $7 billion after the acquisition.
Alere’s stock closed up 2.78 percent Monday at $38.50 a share, well below Abbott’s offer of $56 a share.
Alere said in April that Abbott offered it $50 million to abandon the deal, but Alere rejected that offer.
The financial results released by Alere on Monday showed a loss of $13 million on revenue of $2.5 billion in 2015.
Read more at the original source: Abbott still not happy with Alere even though financials have been released
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