Medtronic mulling bid for Smith & Nephew
Medtronic, a listed Minneapolis, Minnesota-based medical device manufacturer, is thinking about making an offer for listed UK-based rival Smith & Nephew, according to a newswire report. A Bloomberg report cited people familiar with the matter, who said Medtronic is at an early stage in its bid preparations, adding that a bid is not imminent.
Smith & Nephew knows that Medtronic is interested, as do investment bank, two of the people said.
One of the people cited by the report said that Medtronic’s interest in Smith & Nephew is more serious than the interest shown by Michigan-based rival Stryker Corp. Stryker CEO Kevin Lobo said in a Financial Times article last week that the group was thinking about making an offer for Smith & Nephew, the item noted.
A takeover of Smith & Nephew by Medtronic would likely involve the US-based company moving its legal domicile to the UK to take advantage of the UK's lower corporate tax rate, according to the people cited by the report.
Medtronic and Smith & Nephew representatives refused to comment, the article said.
Smith & Nephew’s market capitalisation stood at GBP 9.50bn (EUR 11.69bn) at the close of trading in London yesterday, 4 June.
Source Newswire Round-up