Medicine show

摘要

Abbott Laboratories wants to play in the big leagues. That's why it's borrowing $6 billion to buy a fairly undistinguished division of BASF, the German chemical giant. The acquisition of Knoll Pharmaceuticals transforms Abbott into the 9th-largest pharmaceutical company in the world, up from 14th place. But does the $6.9 billion deal really make it a better company? It almost quintuples Abbott's debt and adds only $400 million to operating income (earnings before interest, taxes and amortization). On the bottom line it dilutes earnings per share by 12 cents this year and adds perhaps a penny a share next year.