GE's $8 billion Abbott deal falls over
Monday, 16 July, 2007
GE Healthcare and Abbott Laboratories have terminated their US$8.13 billion (A$9.5 billion) contract for the sale of Abbott's laboratory and point-of-care diagnostics businesses to GE.
In separate statements, the two companies said they were unable to agree on final terms and conditions of the proposed sale.
The agreement was announced in January this year and was aimed at broadening GE Healthcare's diagnostics business. It did not include Abbott's molecular diagnostics or diabetes units.
At the time, GE said Abbott's in vitro diagnostic technology would complement GE's in vivo diagnostic imaging systems business, as well as its molecular imaging, information technology and patient monitoring units.
Abbott's in vitro diagnostics and point-of-care business generated net sales of approximately $2.7 billion (A$3 billion) last year.
Local newspaper The Chicago Tribune quoted several analysts as saying the price was extravagant and "too good to be true" for Abbott.
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