Stryker to table GBP 13bn takeover offer for Smith & Nephew
Smith & Nephew (S&N) shares gained yesterday, 20 November on talk that Stryker Corporation, a listed Kalamazoo, Michigan-based medical devices group, will launch a fresh takeover bid for its listed UK-based rival, The Daily Mail reported. The newspaper's market report section mentioned chatter that Stryker will return with a cash offer of close to 1500p per share at the end of this month, but did not cite a source for the speculation.
Stryker, following bid rumours in May, announced that although it had considered bidding for S&N, it had decided not to proceed with an offer. Takeover Panel rules stipulated that Stryker could not make a fresh bid for S&N for a further six months, the item noted.
The article added that the medical technology company Medtronic also considered buying S&N, but subsequently paid GBP 25.3bn (EUR 31.68bn) for Irish rival Covidien.
Talk that S&N might be seeking a buyer for its wound care operations for GBP 2.6bn has circulated over the past few weeks, the newspaper said. Any potential bidder for S&N would therefore want to make a move on S&N before it agrees a sale of the wound care business, the report argued.
Smith & Nephew’s share price hit 1093p on the London Stock Exchange at one point yesterday before closing 6p up at 1087p, giving the company a market capitalisation of GBP 9.70bn.
Source Daily Mail