Deals
LabCorp’s Logic in Covance Takeover Is Put to Test: Real M&A
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LabCorp shareholders are skeptical that the company is making the right move by acquiring Covance Inc.
At first blush, the $5.6 billion takeover makes little sense. Laboratory Corp. of America Holdings runs routine medical tests for patients, while Covance provides research for drugmakers. LabCorp’s stock plunged yesterday, ending the nine-month rally that just last week had yielded a record price. It’s one of few acquirers to decline after announcing a deal this year -- most have gained because of the promise of growth or savings from making purchases.