Guidant Still Haunts Boston Scientific

In 2006, Boston Scientific Corp. paid a whopping $27 billion for Guidant, a company plagued with safety problems. Fortune called the deal one of the worst in corporate history, second only to AOL Time Warner.

Four years later, the pain caused by the Guidant deal is still evident. The company just announced it will cut as many as 1,300 jobs, reshuffle management, and restructure the company, all in the name of "driving innovation, accelerating profitable growth, and increasing both accountability and shareholder value. Above all else, they will help us better serve our customers and their patients," CEO Ray Elliott says in a statement.

"The actions we are announcing today will provide the organizational structure and leadership needed to execute our strategic plan and fulfill the enormous promise of this company," the CEO adds.

Investors are going to need more convincing. Shares of the medical-device company were down 9 percent to $7.55 in late-morning trading after the company missed its latest quarterly earnings target. In December 2005, before Boston Scientific got in a bidding war with Johnson & Johnson over Guidant, the company's shares peaked at around $27. For investors, it's been all downhill ever since.