Halister News

(Bloomberg) -- St. Jude shareholders will get $46.75 cash and 0.8708 shares of Abbott, representing total consideration of ~$85/share, according to e-mailed statement from companies.

• St. Jude up 29% pre-market, trades as high as $80
• Deal expected to add to ABT’s adj. EPS in first full year after closing, expected to add 21c to EPS in 2017 and 29c in 2018
• Combination expected to result in annual pre-tax savings of $500m by 2020, including sales and oper. benefits
• One-time deal-related costs and integration expenses will be provided at future date
• Total transaction equity value $25b based on ABT’s 5-day volume-weighted avg share price
• ABT will assume or refinance STJ’s $5.7b in net debt
• ABT intends to fund cash portion of deal with medium- and long-term debt
• ABT separately expects to issue $3b common stock in secondary market to rebalance capital structure
• Financing for STJ and previously announced Alere purchase “contemplates financing capacity to close both transactions”
• ABT conf. call 8am www.abbottinvestor.com
• STJ postponing May 4 annual meeting due to deal

Statement: NSN O6CBJUAIBMDE