ABT does not want trouble. If ALR cannot file the quarterly report for past two quarters then there may be something seriously wrong with ALR.
Since ALR has not stepped forward with its true financial then ABT has right to terminate the acquisition. May be ABT offer ALR some money to motivate the company.
Another choice is that ABT reduces the acquisition purchase price. ALR shareholders may not like it but the reduced price is better than significantly reduced price when ALR is left alone.
ABT can buy ALR shares now that are traded at discount price too.
First, if ALR has a good assets then their shares can bought at a discount and the deal will be done eventually. In case ALR problems are hard to solve then ABT can reject the deal.
Either way, ABT has advantages and it should not be punished for something that it tirns out in its favor.
Sentiment: Strong Buy
ABT is also buying STJ. STJ is getting approval for leadless pacemaker here in US while it is selling it in Europe.
I think, ABT investors can gain at least 20% by the end of this year without being worry about the market.
I say, uncertainty. Investors don't want that. ALR created some uncertainty and print media is steering STJ acquisition. All above will be solved by time. So, give ABT a few months and it will be on its right course again.
This is the best deal that ABT could make at the right time.
STJ has $677m cash, makes about $1B in next 3 quarters, has $1.5B in receivable, $900m inventory while payable is around $700m. So, there is over $3B of cash to grab when the deal is closed.
After all, with all above, ABT needs about $18B to close the deal. Two years from now, STJ assets will worth $50B.
This is ABT style. It goes down several days in a row and then it reverse itself and go up several days in a row.
Probably, tomorrow's CC will push it up.