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Cramer Says St. Jude Is A 'Very Responsible Company' But Abbott Needs To 'Take A Hard Look' At Merger Agreement


Shares of St. Jude Medical, Inc. (NYSE: STJ) were trading lower by more than 3 percent after the company warned the public that some of its heart devices could be at risk of premature battery depletion.

The warning is completely unrelated to prior allegations by Muddy Waters and MedSec Holdings, which alleges St Jude's devices could be vulnerable to cyber hacks.

Related Link: St. Jude Investors Show Concern Amid Battery Issue; Abbott Reassures Deal Will Close

Jim Cramer said that St. Jude is a "very responsible company." However, this warning does call into question what affect, if any, it would have on St. Jude's pending merger with Abbott Laboratories (NYSE: ABT).

Cramer recalled Muddy Waters' short thesis against St. Jude and pointed out that these allegations "didn't break the deal." Nevertheless, the battery warning is indeed something that Abbot will have to "take a hard look at" since there could be a damage to the company's reputation. Patients could be left wondering now if they have a "good" or "bad" device implanted.

Cramer's cautious tone is likely felt among investors as shares of Abbott were trading lower by more than 4 percent Tuesday.


Related Articles (ABT + STJ)

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Posted-In: CNBC Muddy Waters Muddy Waters St Jude Medical St. JudeM&A News Short Sellers Media

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