Abbott (NYSE:ABT) reportedly triggered its right to audit Alere‘s (NYSE:ALR) books before consummating their $5.8 billion merger.
“Abbott is abiding by the terms of the contract with Alere and has exercised its contractual rights to audit Alere’s books and records,” spokeswoman Darcy Ross told Bloomberg. “To date, we have had a partial response from the company.”
Alere said it still expects the deal to close as planned, the news service reported; Alere has said it expects to complete the deal by the end of this year.
“Alere is in full compliance with its merger agreement with Abbott and we are confident that the transaction will be completed in accordance with its terms,” the company told Bloomberg in an e-mailed statement.
The month after the $56-per-share deal with Abbott was announced in February, Alere revealed a U.S. Justice Dept. subpoena over its dealings with 3rd-party distributors and healthcare officials in Africa, Asia and Latin America and said it would miss the deadline for its annual earnings report; Waltham, Mass.-based Alere has yet to file the report.
By April the deal was in trouble, with Alere rejecting a $50 million breakup offer from Abbott as that company’s CEO, Miles White, appeared to throw some shade. Shareholders have sued to block the deal.
Gabelli analyst Jeff Jonas said Alere isn’t likely to share any of that information with Abbott until its own review is done.
“I don’t think Alere will give them that full access until the restatement is complete and everything is pristine,” Jonas told Bloomberg. “Alere still insists it’s not material and only related to the timing of revenue, but the longer this drags on the less credibility they have.”
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