Johnson And Johnson to abandon acquisition

JOHNSON & Johnson may abandon a $25.4 billion (€21.04bn) acquisition of Guidant Corporation because Guidant refused to accept revised terms after it recalled faulty heart defibrillators in June.

Guidant failed to agree to a restructuring of the proposed transaction, New Jersey-based Johnson & Johnson said yesterday in a statement. Guidant, based in Indianapolis, recalled 109,000 defibrillators, setting off regulatory probes and giving competitors an advantage.

“Johnson & Johnson believes that these events have had a material adverse effect on Guidant, and, as a result, that it is not required under the terms of the merger agreement to close,” the company said.