Abbott laboratories ABT.N will buy St. Jude Medical inc. STJ.N by 25 billion which they will expand its heart device business. It also competes with Medtronic plc MDT.N and Boston scientific corp. an analyst asked a question about the deal and also its financial benefits. And also asked about how it will affect Abbott for buying diagnostics company Alere inc. ALR.N, which the U.S government is investigating for its sales practices. Abbott chief executive officer Miles White defended the St. Jude deal by saying that it would earn as sharing for the year, which is a good shine for the business.
St. Jude shareholders will get $46.75 in cash and 0.8708 in stock, and also will get $85 per share. This shows the 37% premium to St. Jude this Thursday. Shares of St. Jude rises 26% to 78.10 in early trading, which is good news for St. Jude business. While Abbott fell 6.7%. This is the report of Abbott. Abbott also said that it will refinance about $5.7 billion of St. Jude net debt.
It has been known that Evercore is advising Abbott on the St. Jude deal and Guggenheim Securities is the financial adviser to St. Jude. Wachtell, Lipton, Rosen & Katz were legal counsel to Abbott while Gibson, Dunn & Crutcher advised St. The deal will also add 21 percent share for earning excluding special items. So, here are some of the details of Abbott buying St. Jude by $25 billion to boost heart device.
And also read about SpaceX Will Soon Fly a spacecraft to Mars by 2018