In re: Alere-Abbott Merger Litigation
An Analysis Group team contributed to the successful resolution of a merger dispute between Alere Inc. and Abbott Laboratories. Kirkland & Ellis LLP and Wachtell, Lipton, Rosen & Katz retained Analysis Group on behalf of Abbott, which filed suit to terminate its $5.8 billion merger deal with Alere. After the parties had entered into the merger agreement, Alere disclosed several negative events, including government investigations and delayed SEC filings. Abbott claimed that these events constituted a material adverse effect under the agreement. Alere also sued, alleging that Abbott was delaying compliance with regulatory divestiture requirements in order to scuttle the merger.
The Analysis Group team – including affiliate Elizabeth Eccher; Co-founder Bruce Stangle; Managing Principals Gaurav Jetley and Michael Holland; Principal Jimmy Royer; and Vice Presidents John Drum, Duncan Fung, Edi Grgeta, and Carletta Wong – supported three affiliated experts who submitted reports in this matter. Professor R. Glenn Hubbard addressed valuation issues; Robert Grien addressed disclosure issues from a banker's perspective; and Professor Donna Hitscherich addressed issues related to divestiture of certain assets. The litigation was resolved with an agreement to lower the acquisition price to $5.3 billion.