Abbott to buy Alere for USD 5.8 billion

Abbott Laboratories is buying Alere for USD 5.8 billion as it tries to expand its medical diagnostics business.

Alere makes tests used to diagnosis the flu, HIV, malaria and several other diseases. Abbott makes drugs, infant formula and medical devices.

Abbott said today that it will pay USD 56 for each share of Alere, a 50 per cent premium from Friday's closing price of USD 36.20.

Shares of Alere Inc, based in Waltham, Massachusetts, jumped more than 45 per cent in premarket trading. Shares of Abbott Laboratories, based in Abbott Park, Illinois, rose less than 1 percent before the stock market open.