Quest Diagnostics Inc said Chief Executive Officer Surya Mohapatra would step down, prompting speculation the No. 1 lab-testing company could be a takeover candidate and sending its shares as much as 15 percent higher.Quest said its board has formed a search committee that will consider internal and external candidates to succeed Mohapatra, who has led the company for seven years. Mohapatra will continue as chairman and CEO for up to six months.The company also increased its quarterly dividend by 70 percent, to 17 cents per share, saying it plans to return the majority of its future cash flow to shareholders through dividends and share repurchases.Mohapatra said Quest did not anticipate making large acquisitions in the next few years and would focus instead on improving operating performance and integrating businesses it has already acquired.
Quest Diagnostics Incorporated is a provider of diagnostic testing, information and services. Shares of DGX traded higher by 10.3% or $5.25/share to $56.23. In the past year, the shares have traded as low as $45.13 and as high as $61.21. On average, 1880460 shares of DGX exchange hands on a given day and today's volume is recorded at 5312869.
