An Abbott Laboratories spokesman said Thursday that the company is not preparing to buy rival St. Jude Medical, a medical-device company, for $25 billion as reported by the Financial Times.
The Financial Times cited anonymous sources as saying that the Abbott Park, Ill.-based drugmaker was working with JPMorgan and Citi to line up financing for the offer but that one had not been made yet.
When asked if he knew how the story had materialized, Abbott spokesman Scott Stoffel said, “I have no idea.”
The newspaper's report warned the deal could fall through. But it's one that analysts have been hoping would happen.
In May of this year, in a report examining the impact of Mylan's 2014 injection of money into Abbott's generic-drug business, Jeff Jonas, a fund manager at Gabelli told Crain's Chicago Business that Abbott could turn into a cardiovascular powerhouse with an acquisition of St. Jude Medical.
An addition of the St. Paul, Minn.-based devicemaker would give the two companies, who already do business together to sell their products, greater negotiating power.
Gabelli estimated then that St. Jude had a market value of $20 billion.
Edwards Lifesciences Corp. is another big acquisition target that would build out Abbott's cardiovascular business, according to analysts.
On an April 22 call, Abbott CEO Miles White said, “I wouldn't want you to think you're only going to see 'little' out of me” in regards to dealmaking.
Abbott has been estimated to have buying power of up to about $25 billion.
