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Alere Confident About Completing Abbott Merger After Court Ruling

NEW YORK (GenomeWeb) – Following a Delaware Chancery Court ruling on Thursday, Alere said it's now confident that the pending merger with Abbott will be completed.

In a filing with the US Securities and Exchange Commission today, Alere said the court order provided a detailed, confidential schedule of actions that must be taken at specific times in order to achieve the antitrust clearances required by the merger agreement. The court order also requires that Abbott provide Alere with advance notice of all future talks with antitrust regulators, and enable Alere to join in those talks.

According to the court's ruling, a specialist would be appointed to mediate disputes about compliance with its order, or with each party's obligations under the merger agreement. If needed, a preliminary injunction hearing will be held on Jan. 27, 2017 to resolve Alere's claims.  

The company noted in its SEC filing that it "is very pleased with the court's actions and is highly confident that the merger will be completed in accordance with the terms set forth in the merger agreement."

Alere sued Abbott in August in a move designed to push its potential acquirer to fulfill its obligations under the terms of their merger agreement, and act promptly in obtaining the required antitrust approvals.

In September, the Delaware Chancery Court recommended that the parties consider mediation, and the companies agreed that they would engage in that manner. However, Alere made clear in an SEC filing last week that "mediation concluded without resolution, and the matter is still pending."

Alere's shares were up nearly one percent to $43.65 in morning trade on the New York Stock Exchange. Abbott's shares were nearly flat at $42.33.