AP
GE, Abbott End $8.13B Diagnostics Deal
Wednesday July 11, 5:45 pm ET
GE and Abbott End $8.13 Billion Deal for Diagnostics Business After Failing to Agree on Terms
NEW YORK (AP) -- General Electric will not buy Abbott Laboratories' diagnostics business as planned, the companies said Wednesday, because they could not agree on the final terms of the proposed $8.13 billion deal.
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GE said the companies decided it was in both of their best interests to terminate their agreement and discussions.
"GE and Abbott worked diligently to complete the transaction but were unable to reach agreement on final terms and conditions," the Fairfield, Conn.-based company said in a statement.
The deal to buy Abbott's core laboratory and point-of-care diagnostics business, first announced in January, had already been approved by regulators in the U.S. and Europe.
Abbott said the decision to terminate the contract would have no impact on its second-quarter or full-year earnings guidance, excluding specified items. The Abbott Park, Ill.-based company said its 2008 outlook is also unchanged.
Abbott shares fell $1.23, or 2.3 percent, to $53.21 in aftermarket electronic trading.
Shares of GE, meanwhile, were unchanged from their closing price of $38.20.
Questions or comments about this story should be directed to reporter Adam Schreck at 212-621-7190.
