Stryker discussing financing for USD 16bn bid for Smith & Nephew
Stryker Corporation, a listed Kalamazoo, Michigan-based medical devices manufacturer, is discussing financing for a takeover bid for listed UK-based rival Smith & Nephew (S&N), according to a newswire report. A Bloomberg report on 24 November cited people with knowledge of the matter who said Stryker was discussing financing and possible competition issues with its advisers.
S&N knows that Stryker is interested in making an offer, as does its advisers, the item said. The people cited by the report added that Stryker might yet decide against making an offer for S&N.
Stryker is thinking about structuring a deal as a “tax inversion,” which would allow it to transfer its domicile for tax purposes to the UK, according to three of the people cited by the report. The people added, however, that Stryker sees strategic benefits of a takeover of S&N other than the potential tax savings, and that the deal could work without the tax inversion.
Stryker CEO Kevin Lobo said in May that the company was at a preliminary stage in considering whether to make an offer for S&N, the item noted. Stryker has been bound by Takeover Panel rules preventing it from making an offer for S&N since May, but that standstill period ends soon, the article added.
Spokespersons for Smith & Nephew and Stryker refused to comment, the report said.
Smith & Nephew's share price gained 48p to close at 1138p in London on Tuesday, valuing the company at GBP 10.16bn (EUR 12.81bn).
Source Newswire Round-up