Skip to main content

Market Overview

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

Share:

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)

View Comments and Join the Discussion!

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

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com