On Thursday, Abbott Laboratories said it would buy Minnesota based, medical technology company St. Jude Medical Inc for $25 billion. Te main aim is to enlarge its heart device business. However, investors are worried that this acquisition will most probably not pay off like it's promised. It will be a cash-and-stock acquisition. Abbott plans to borrow money for the deal.
No matter how Valeant Pharmaceuticals International Inc. tries to win investors favor but its situation gets worse. The company reeling with troubles for months offered a financial outlook on Tuesday which turned out to be worse than people feared. Stocks dropped and the company's market value was cut into almost half.