J&J Sues Boston Scientific and Abbott Labs Over Guidant Deal

Excerpt from our One-Page WSJ Summary:

J&J Sues Over Scuttled Guidant Deal

Summary: Johnson & Johnson (JNJ) is suing Boston Scientific (BSX) and Abbott Laboratories (ABT) for alleged breaches of J&J's prior agreement to acquire Guidant Corporation. In April, Boston Scientific won a bidding-war for Guidant, acquiring the company for $27 billion, then avoiding antitrust claims by selling Guidant's cardiac-stent unit to Abbott. J&J claims that Boston Scientific, in violation of the J&J/Guidant agreement, "leaked confidential information about itself to Abbott in the process of arranging Abbott's purchase." Ongoing legal and regulatory problems at Guidant have left many J&J investors happy the deal didn't go through; J&J received a $705 million breakup fee from Guidant.
Related links: Full WSJ article • Barron's: Most Respected Companies • Failed Guidant Bid Creates Buying Opportunity in Johnson & Johnson • Drug Companies Threatened By Proposed Patent Legislation • J&J Added to Berkshire Hathaway Holdings
Potentially impacted stocks and ETFs: Pfizer (PFE), Merck (MRK), iShares Dow Jones US Healthcare (IYH), Health Care SPDR (XLV)

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